: SC Upholds Boiler Claim of Sugar Factory : Insurer Cannot Repudiate Without Proof
Judgment dated 13.11.2025 of the Supreme Court in SLP [Civil] No.1377-1378 of 2022 of Kopergaon Sahakari Sakhar Karkhana Ltd Vs. National Insurance Co. Ltd and another
The appellant Sugar factory had taken insurance for the Boiler for 2005-2006 for Rs.1.60 crores.
The Boiler was registered under the Boilers Act. On 17.11.2004, the Boiler Inspector gave fitness certificate.
On 12.5.2005, there was blast / explosion in the boiler, during the currency of the fitness certificate.
Due to the accident, two tubes attached to the Boiler got snapped / detached.
On 22.6.2005, the respondent no.1 Insurer repudiated the claim based on the Surveyor report as per the letter reproduced in para 5(iv) of the judgment.
In that context, the SC discussed the surveyor report in para 30 of the judgment that though it speaks of two boiler tubes slipping off from its joint on the drum of the boiler, it does not rule out boiler tubes slipping off due to an explosion as had been the claim of the insured.
Specific pleadings of claimant regarding explosion causing tubes slipping off are not controverted.
It was, therefore, held that it would be extremely unjust to non-suit a claim on discovery of defects post the blast in the absence of any specific material that such defects cannot be an outcome of the blast or explosion.
