Telangana HC dismisses Spectrum Power Generation Ltd’s appeal in insurance dispute

Case stems from 2002 incident involving Steam Turbine Generator at company's thermal power plant, for which Spectrum sought insurance coverage under its Industrial All Risks Policy

Hyderabad: A two-judge Bench of the Telangana High Court, led by Chief Justice Alok Aradhe and Justice J Sreenivas Rao, on Thursday dismissed the commercial court appeal filed by Spectrum Power Generation Limited (plaintiff) in its ongoing insurance dispute.

The case stemmed from a 2002 incident involving the Steam Turbine Generator (STG) at the company’s thermal power plant, for which Spectrum sought insurance coverage under its Industrial All Risks (IAR) Policy.

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The company claimed losses caused by the incident and sought compensation from United India Insurance Company Ltd (lead insurer) and co-insurers The Oriental Insurance Company Ltd and ICICI Lombard General Insurance Company Ltd.

While the trial court partially ruled in favour of Spectrum in October 2021, awarding Rs 17.79 crore with interest and costs, it dismissed the plaintiff’s claim for business interruption losses. Spectrum appealed, arguing that the trial court failed to properly interpret the insurance policy, particularly regarding claims for business interruption losses.

However, the insurers countered that the trial court had correctly ruled, finding that the plaintiff did not provide adequate evidence to substantiate the business interruption claim. After reviewing the case, the High Court upheld the trial court’s judgment, stating that the lower court had thoroughly considered all evidence and correctly decreed the suit.

The Bench found no merit in the appeal and dismissed it, reaffirming the trial court’s decision to award the plaintiff Rs 17.79 crore and dismiss the remaining claims.

 

Writ petition on ‘illegal activities’ of Jubilee Hills Co-Operative Housing Society

Justice T Madhavi Devi of the High Court took up on file a writ petition challenging the inaction of the Commissioner for Co-operation and the Registrar of Cooperative Societies in addressing the alleged illegal activities of the Jubilee Hills Co-Operative Housing Society Limited.

The case centres on accusations that the society has been admitting new members in violation of its bye-laws. The writ plea was filed by Sujatha Ramakrishna, who claims that the society has been accepting substantial sums of money around Rs 5 lakh as advance/security deposit and Rs 300 towards share capital from individuals seeking membership.

The petitioner alleges that these admissions are being made for purposes that go beyond the scope of the society’s approved objectives and contravene its established rules and regulations.

According to Ramakrishna, despite her earlier representation and a stay order issued by the court in a separate writ plea, the society has continued to admit members unlawfully.

The petitioner asserts that such actions violate the provisions under the Telangana Co-Operative Societies Act, as well as the rules and bye-laws governing cooperative societies in the State.

The judge has scheduled further hearings in the matter to consider the legality of the society’s actions and the regulatory authorities’ response to the petitioner’s concerns.