1. The plaintiff is a private bank registered under the provisions of the Companies Act 1956. The defendant is a public sector insurance company engaged in the business of general insurance. Among the various insurance covers the defendants issue one such cover is Bankers Indemnity Insurance.

2. The defendants had issued one such Bankers Indemnity Insurance Policy to the plaintiff. Fraud was committed in the plaintiff's branch office situated at Ravipuram Desam Kochi, Kerala by its employee one T.M. Prajeeth who was the then Manager and in-charge of the extension counter of the said branch. The modus operandi adopted by the said T.M. Prajeeth was to debit, without authorization, the account of certain corporate customers of the plaintiff and utilize those amounts to make payment to certain stock exchange brokers for the settlement of the said employee T.M. Prajeeth's personal share transactions. After lodging FIR against the said T.M. Prajeeth, the plaintiff made a claim under the insurance policy from the defendant in the sum of Rs.1,01,03,000/-. The claim was lodged by the plaintiff on 30.10.2002. No action was taken by the defendant on the claim though some meetings and