JUDGMENT

B.P. RAY, J. - The respondent nos. 1 and 2 as the plaintiffs filed Money Suit No. 73 of 1983 before the learned Subordinate Judge, Baragarh. By the judgment and decree dated 17.08.1985 and 26.08.1985 respectively, the learned Court below decreed the suit which are under challenge in the present appeal.

2. Parties have been described as per their status in the suit before the learned Court below for the sake of convenience.

3.The case of the plaintiffs-Society in brief is that plaintiff no. 1 is a registered Co-operative Society and plaintiff no. 2 is its Secretary. The main function of plaintiffs-Society is to store potatoes of the cultivators in the Cold Storage on payment of storage charges. During 1980-81, 5300 quintals of potatoes were kept in the Cold Storage chamber for safe storage by different cultivators. The above stock was insured on 24.04.1981 with the defendant No. 1 Company covering all sorts of risks against damages of potatoes on payment of premium amount of Rs. 4,100/- to the said defendant through its authorized agent i.e. defendant No. 5. After receipt of the above premium, the defendant No. 5 issued one cover note on behalf of the defendant No. 1-Company. The period of insurance coverage commenced from 26th April, 1981 till 25th December, 1981. The cover note was issued pending issuance of stand policy of insurance. Subsequently, the defendant No. 1-Company did not issue the policy despite repeated reminders and notices by the suit Co-operative Society. During the coverage period, despite precaution taken by the Society, the stock started getting damaged due to fluctuation of voltage in supply of electricity as well as failure of electricity supply at some times.

Ultimately by 22.10.1981, the situation went beyond the control of Society and about 1200 quintals of potatoes worth of Rs. 2,64,000/- per quintal as per government Cold Storage rate. The matter was brought to the notice of defendant No. 4-Branch Manager of the defendant No. 1-Company of Sambalpur District by telegram on the very day of 22.10.1981. On receipt of telegram, the defendant No. 4 intimated the plaintiffs-Society by return telegram to the effect that defendant No. 5 was advised to contact the plaintiffs-Society to assess the damage. Accordingly, defendant No. 5 verified the Cold Storage and was satisfied about the loss. But the damage was not released by the defendant No. 1-Company, for which the suit Society served notice on the defendant No. 1 Company through its advocate. As the defendant No. 1-Company disowned its liability under the cover note by taking a false plea of non-payment of premium and the cover note did not include the risk in question, the plaintiffs-Society was compelled to bring the money suit to recover the damages.

The defendants contested the suit by filing the written statement denying the plaint allegations pleading, inter alia, that there was absolutely no payment of any premium. The then Secretary of the Society intended to insure the stock with Insurance Company pending approval of the Board of Directors of plaintiffs-Society. Therefore, on the request of the Secretary of the Society, the defendant No. 5 issued the provisional cover note covering the risk of the stock in the Cold Storage against fire on condition that the premium of Rs. 4,100/- would be paid to the defendant No. 1 Company after due approval of the Board of Directors.

Subsequently, the Secretary was transferred and the premium was never paid to defendant No. 1-Company through the defendant No. 5. The alleged loss or damage of the stock because of the fluctuation of the power supply was not covered by the standard fire policy issued by the defendant No. 1-Company. With this, it has been pleaded that the defendants have no liability whatsoever to pay the damage claimed. Besides that, the suit having not been filed within one year is barred by limitation. Therefore, the suit be dismissed with cost.

4.Upon the pleadings of the parties, the