THE CEYLON INSURANCE CO. LTD. v. RICHARD ET AL
1951 Present: Gratiaen
J. and Gunasekara J.
THE CEYLON INSURANCE CO., LTD., Appellant, and
RICHARD et al, Respondents
S. C. 374-D. C. Colombo, 18,823
Motor Gar Ordinance, No. 45 of
1938-Part 8-lnsurance against third party risks-Scope of insurer's liability to
third party-Restrictive and excepted conditions in policy-Breach of excepted
condition-Action for declaration of non-liability- Statutory rights and
obligations of injured party-Requirement of prescribed notice to injured
party-Sections 54, 63, 69, 75, 127, 128, 130, 133, 134, 137 138.
In an action instituted under Section 137 of the Motor Car Ordinance by an
insurer to obtain a declaration of non-liability for breach of an excepted
condition in a policy of insurance in respect of third party risks issued in
conformity with the requirements of Part 8 of the Motor Car Ordinance- . .
Held: (i) As between insurer and insured, their rights and obligations
inter se are measured solely by the terms of their contract, so that the
contractual duty of the former to indemnify the latter may be avoided on any
lawful ground" which the parties might mutually agree
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