JUDGMENT :

A.S. Bopanna, J.

1. The appellant is a registered partnership firm engaged in the business of printing high technology labels used as adhesive labels mainly by Drug Manufacturers and Other Companies on their packing material. In order to carry on such business, the appellant had imported highly sophisticated and costly machinery and had installed the same in their premises. Among the said machinery that was installed, it also included the ‘Aquaflex’ brand of machinery from Canada and ‘Gallus-Arsoma’ from Switzerland, which are sophisticated printing machinery. In order to insure the said machinery against any damage and loss, the appellant had secured a ‘Standard Fire and Special Perils’ Policy from the respondent insurance company. The said policy was for a total cover of Rs. 3,35,30,000/- (Rupees Three Crores Thirty-Five Lakhs Thirty Thousand only) and was valid for the period 15.05.2003 to 30.08.2004.

2. When this was the position, as per the case of the appellant, there was a fire mishap in the factory on 28.02.2004 at about 7.50 AM. The fire had damaged and destroyed certain portions of the factory which included the plant and machinery, building, raw material and fini