A.M. Ahmadi, CJI. — Special Leave granted.

The respondent No. 1 Sujir Ganesh Nayak & Company is a registered partnership with its head office at Quilon carrying on business in import and export of cashew. It has four factories at Kunnikode, Mulavana, Perumpuzha and Ayathil for processing cashew. The respondent No. 1 obtained two fire policies from the appellant. Insurance Company dated 5.11.1976 and 2.5.1977, both for a period of twelve months, and for the amounts of Rs. 6,00,000/- and Rs. 1,20,000/- respectively. Both the policies had a Riot and Strike Endorsement to the following effect:

"Riot & Strike Endorsement.—In consideration of the payment of the sum of Rs....... additional premium, it is hereby agreed and declared that not withstanding anything in the written policy contained to the contrary the insurance under the policy shall extend to cover Riot and Strike damage which for the purpose of this endorsement shall mean (subject always to the special conditions hereinafter contained),

Loss of or damage to the property insured directly caused by:

1. The act of any person taking part together with others in any disturbance of the public peace (whether in connection with