Quick Summary: The Madras High Court, led by Justice N. Anand Venkatesh, canceled a decision that favored M/s Rajkumar Impex Pvt Ltd in a disagreement with The New India Assurance Co. Ltd. The court found problems with whether M/s Rajkumar Impex Pvt Ltd had the right to make claims under the insurance policies.
In November 2015, M/s Rajkumar Impex Pvt Ltd suffered huge losses due to floods in Tuticorin, which damaged their cashew stock and other properties. They filed claims under three insurance policies with The New India Assurance Co. Ltd.
The Tribunal awarded M/s Rajkumar Impex a large sum, including interest, after the company disagreed with The New India Assurance Co. Ltd's offer to settle. The tribunal decided the claims were valid even though the insurance company objected.
"Rs.7,77,12,349/- awarded to Claimant in settlement of this claim in dispute."
The insurance company questioned if M/s Rajkumar Impex had the right to make claims since the business had been transferred to another company, M/s Rajkumar Cashew India Pvt Ltd. The court needed to figure out if M/s Rajkumar Impex could still make the claims.
Justice Venkatesh pointed out that the Business Transfer Agreement dated July 14, 2016, showed the transfer of assets, including insurance policies, to the new company. The court found that the tribunal did not properly address whether M/s Rajkumar Impex had the right to pursue the claims.
"The respondent/claimant did not have the right to maintain the claim petition."
On February 3, 2026, the court canceled the decision, ruling in favor of The New India Assurance Co. Ltd. The court stressed the need for proper checking of the claimant's rights before moving forward with the claims.
Following the decision, The New India Assurance Co. Ltd was allowed to take back the money they had deposited as part of the temporary order.
