1999 INSC 0503
SUPREME COURT OF INDIA

Oriental Insurance Co. Ltd.

Vs.

Mantora Oil Products Pvt. Ltd.

                                       (S.Saghir Ahmad and R.P.Sethi JJ.)

21.07.1999

                                                       ORDER

The Text below is only a summarized version of the order pronounced

The respondent company who dealt in oil products took insurance policies with appellant in order to
protect itself against losses due to accidents, theft, pilferage, non-delivery etc., occurring in the
course of transit. One of the conditions of the policy was if the value of the total quantity of oil
transported fell short of Rs 17. 10 crores during the period of policy, the appellant would refund to
the respondent the proportionate premium on the amount of shortfall in the quantity transported.
And when the period of policy expired on demanding the refund the appellant refused to refund on
the ground that the premium charged by the appellant from the respondent was less than what it
ought to have been charged. But National Consumer Disputes Redressal Commission accepted the
claim of the respondent and on appeal to Supreme Court from the Order of the commission it was
held that after having received the benefit under the policy of insurance from the respondent by way
of premium, it is not open to the appellant to contend that there was a mistake on their part in
charging the premium at a rate lower than the rate at which it should have been charged by them and
thereby ordered refund of the extra premium in terms of the policy.