JUDGMENT - P.S. PATANKAR, J.:---A few facts ---

Sometime in August, 1986, the appellant imported Onion Dehydration Machinery. This was financed by Maharashtra State Finance Corporation (MSFC). MSFC arranged for Marine-cum-Erection Policy for 18 months period from 12-9-86. The said policy expired on 12-3-1988. On 25-8-88, MSFC requested the respondent for renewal of the said policy by letter dated 25-8-88. Cheque for premium of Rs. 3135/was also sent. By the said letter, the respondent was asked (i) to renew the policy and (ii) to issue stamped receipt for the premium paid. This was received by the respondent on 26-8-88. The respondent on 26-8-88 issued a stamped receipt recording receipt of the premium. On 7-4-1989, the respondent wrote a letter to the appellant pointing out that MSFC , Nasik has deposited an amount of Rs. 3135/- towards the premium for Fire Policy covering the machinery. A standard form for the fire insurance came to be sent. This was received by the appellant on 16-6-89. The appellant filled he same and sent it back to the respondent. It specifically mentions in para 11 that the period of insurance is from 12-3-88 to 12-9-89. This was received by the respondent a

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