The unsuccessful plaintiff filed instant appeal against Judgment and decree, dated 31.10.1990 in O.S.No.155 of 1984 on the file of the Court of the Subordinate Judge, Nellore. His suit for recovery of a sum of Rs.82,000/- which includes Rs.58,600/-towards damages and Rs.23,400/-towards salvage charges, was dismissed by trial Court accepting the plea of respondent insurance company, namely, Oriental Fire and General Insurance Company Limited (now Oriental Insurance Company Limited). In this appeal, parties are referred to as they are arrayed in suit.

2. The case of plaintiff is as follows. Bobbala Dharma Raju is original owner of MPM 370 fishing boat. So as to insure the boat with defendant company, Dharma Raju paid first instalment of premium in a sum of Rs.1,650/-on 17.12.1982. Even before regular Marine Hull Policy could be issued, he entered into an agreement with plaintiff to sell the boat for Rs.66,000/-. Having received entire sale consideration, he transferred boat to plaintiff. On 15.02.1983, seller and buyer addressed letters to defendant for transfer of Marine Policy. On 12.03.1983, agent of defendant addressed communication to plaintiff advising to pay second