The Insurance Company is liable to indemnify the loss caused during transhipment, and the complainant had insurable interest in the goods.

Mr. Justice Chandrashekaraiah, President—The complainant is a manufacturer of pharmaceutical goods, i.e., drugs and medicines, for which they import raw-material such as “Sulphadoxine BP 80”. Accordingly, the complainant imported the above said raw-material in 40 drums of 25 kgs each in the vessel “S.S. Pacific Arrow PER S.S. Ocean Strenth V. 30A” under the Bill of Lading vide No. 310777100 dated 31.12.1990 from M/s. APC Pharmaceuticals and Chemicals Limited, Hongkong vide their Invoice No. INV 1680/90. The container of the cargo was destuffed fully at 20 ID(DPT) on 8th and 9th February, 1991. The clearing agents inspected the goods under the custom’s supervision and found only 25 drums out of 40 drums. Immediately thereafter the complainant issued a notice to the opposite party (for short, “O.P.”) No. 1 for untraced cargo on 18.2.1991. The said fact was intimated to O.P. No. 2. O.P. No. 1 called upon the complainant to furnish the certificate of survey held in Hongkong while boarding the raw-materials on ship on 31.12.1990. Immediately after the receipt of the said notice, the complainant furnished the certificate. O.P. No. 2 had also issued a short landing certificate dated 15.4.1991.

2. After the receipt of the short-landing certificate, the complainant made a claim for compensation of US $ 15,912.50 (which represents the value of 15 drums consisting of sulphadoxine BP 80 at the rate of US $ 41 per kg). On the said claim, O.P. No. 1 issued an endorsement stating they are not able to accept any liability on the ground that the container was delivered at the destination with the original seal intact and O.P. No. 1 directed the complainant to take up the matter with the supplier of the complainant. This has made the complainant to file the complaint before this Commission.

3. O.P. No. 1 has filed version justifying its action in repudiating the claim. According to O.P. No. 1, the policy is in the name of M/s. APC Pharmaceuticals and Chemicals Limited, Hongkong and, therefore, it is for the complainant to prove that it is a consignee and the consignor has endorsed the policy in its favour.

4. This Commission after hearing both the parties had dismissed the complaint by its order dated 15.3.1996. As against this order, the complainant preferred a First Appeal No. 151/1996 before the National Commission, New Delhi. The National Commission after considering the stand taken by the O.P. No. 1 with reference to Sections 7 and 17 of the Marine Insurance Act has held as follows:

“In the course of business, it is nothing but an implied agreement with assignee to take benefits of the insurance cover. Otherwise the original policy to the complainant could not be handed over to the complainant.

In case we consider the moment the documents were assigned to take delivery of the consignment insurable interest also stood transferred impliedly in favour of the appellant-complainant and naturally, the complainant-appellant is supposed to be the owner of the insured goods having insurable interest in them.

In the aforesaid circumstances to say that the appellant did not have any insurable interest or that insurable interest had not been assigned, does not appear to be sustainable and, accordingly, we set aside the finding of the State Commission.”

After holding so, the National Commission has remanded the matter to this Commission for reconsideration of the case in view of the statement made by the learned Counsel appearing for O.P. No. 1 (respondent in the appeal) that the respondent wanted to file certain documents. The said statement reads thus:

“During the course of arguments, learned Counsel for the respondent wanted to file certain documents. We do not have the benefit of the opinion and the view which might have been taken by the State Commission on merits of the case.”

5. While remanding the matter, the National Commission has also directed the parties to appear before this Commission on 29.9.2005.

6. Pursuant to the order of the National Comm