National Insurance Co. Ltd., v. M/s. Monalisa Emplorium

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Appeal Suit No.193 of 2006, High Court of Andhra Pradesh at Amaravati, V. Gopala Krishna Rao J., decided 10.03.2026 (reserved 02.03.2026). Insurer National Insurance Co. Ltd. (appellant/defendant No.1) overturned the trial Court's decree awarding M/s Monalisa Emplorium (respondent No.1/plaintiff) Rs.1,72,650/- with interest and costs under a Shop Keepers Insurance Policy (Cover Note No.68739, sum insured Rs.2,25,000/-, premium Rs.609/-) for alleged theft/burglary of cloth stock on 26.10.1991. Held: removal of unsold cloth by creditor-traders M.S.R.Anjaneyulu and Subramanyam in daylight, without resistance by P.W.2 (plaintiff's wife) or the worker Siva Narayana, was neither theft nor burglary and outside policy coverage; breach of Condition No.5(1)(a) (no effective steps to apprehend culprits/recover property; case closed as false by Police, no protest petition); FIR (Ex.A-4) received only on 21.08.1992; but next-day intimation proved via Ex.A-3 certificate of posting; loss of Rs.1,25,000/- unproved for want of inventory (Ex.B-4 chit: Rs.34,813/-). Defendant No.2: State Bank of Hyderabad (counsel Ch.Siva Reddy); plaintiff's counsel P N Murthy; appellant's counsel Venkateswarlu Paladugu (argued by P.Ganesh). Background proceedings: C.D.No.152/1993 (District Consumer Forum, Guntur - dismissed, complicated questions of fact), private complaint/VIAMM Court false final report, O.S.No.376 of 1993 (Rs.81,550/- loan recovery), O.P.No.14 of 1997. Statute: Section 96 CPC. Result: appeal allowed, suit dismissed, parties to bear own costs.