Non-Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL No. 1130 of 2007

M/s. INDUSTRIAL PROMOTION & INVESTMENT

CORPORATION OF ORISSA LTD.

.... Appellant(s)

Versus

NEW INDIA ASSURANCE COMPANY LTD. & ANR.

…. Respondent(s)

J U D G M E N T

L. NAGESWARA RAO, J.

The Appellant is a wholly owned Public Sector

Undertaking of the Government of Orissa. The Appellant

finances medium and large scale industries within the State

of Orissa and is also involved in setting up joint sector

industries with private entrepreneurs. The Appellant

extended a term loan of Rs. 40,74,000/- to M/s. Josna

Casting Centre Orissa Pvt. Ltd. As the loan amount was not

1

Digitally signed by

NARENDRA PRASAD

Date: 2016.08.22

17:39:09 IST

Reason:

Signature Not Verified

repaid, the Appellant exercising its power under Section 29

of the State Finance Corporation Act, 1951, took over the

assets of M/s. Josna Casting Centre Orissa Private Limited

on 14-02-1992. On 23-01-1996, the Appellant insured the

said assets with Respondent No. 1 for a sum of Rs.

46,00,000/- under the Miscellaneous Accident Policy, Rs.

60,40,000/- under the Fire Policy an