The Gujarat High Court has dismissed an appeal filed by The Oriental Insurance Company Limited against a decree directing it to pay ₹2 lakh with 8% annual interest towards fire-related damage suffered by Pooja Paper Tube Industries.
Justice J. C. Doshi passed the judgment on August 17, 2026, holding that the insurance company could not rely on a technical interpretation of the policy after failing to lead evidence to support its defence.
Background of the Case
Pooja Paper Tube Industries had insured its stock with Oriental Insurance under a fire insurance policy covering stock up to ₹5 lakh. The policy was in force from August 12, 1994 to August 11, 1995.
On April 14, 1995, a fire allegedly caused by an electrical short circuit damaged stock at the factory premises. The police prepared a panchnama, while an insurance surveyor inspected the site and assessed the loss.
The company subsequently filed a civil suit seeking ₹2.24 lakh. The City Civil Court, Ahmedabad, ultimately awarded ₹2 lakh with 8% interest from the date of the suit until realization.
Insurance Company's Challenge
Before the High Court, Oriental Insurance argued that the trial court had not properly explained how it arrived at the ₹2 lakh figure. It also argued that the policy terms required the insured stock to be stored separately and that the damaged stock was located in the factory compound and adjoining godown.
The insurer further relied on its interpretation of the proposal form and policy conditions.
High Court's Observation
Justice Doshi noted that the insurance company had neither cross-examined the plaintiff's witnesses nor produced independent oral or documentary evidence during the trial.
The Court also considered the surveyor's report, which recorded extensive damage to Kraft Paper stock in the open compound and godown. The report stated that the damaged stock had been checked and verified and that the insured had complied with the warranties at the time of survey.
The Court observed:
“The technical interpretation of proposal form as well as insurance policy without adducing evidence in that regards is not permissible.”
It further held that the policy document on record covered the risk of “stock and stock in progress” and was sufficient to establish the insurer's liability for the insured risk.
Decision
Justice Doshi found no reason to interfere with the trial court's judgment and decree. The first appeal was dismissed.
The High Court discontinued any interim relief granted earlier and directed that any amount deposited pursuant to the decree be disbursed to the original plaintiff.
Case Details:
Case Title: The Oriental Insurance Company Limited v. Pooja Paper Tube Industries
Case Number: R/First Appeal No. 5712 of 2019
Judge: Hon'ble Mr. Justice J. C. Doshi
Decision Date: August 17, 2026
