Between The Lines - July 2024

KEY HIGHLIGHTS

Supreme Court: Exclusion clauses in insurance contract should be interpreted strictly as they may absolve all the liabilities of the insurer.

⁎ NCLAT: Debt arising out of advance payment for supply of goods or services is an operational debt in terms of Section 5(21) of IBC.

⁎ Telangana High Court: Civil courts have jurisdiction to determine share title, not NCLT/NCLAT.

⁎ Bombay High Court: Mere long-term continuance of employment does not entitle an employee to seek regularization of his services.

I. Supreme Court: Exclusion clauses in insurance contract should be interpreted strictly as they may absolve all the liabilities of the insurer.

In the matter of United India Insurance Company Limited v. M/s. Hyundai Engineering and Construction Company Limited and Others [Civil Appeal No. 1496 of 2023], decided on May 16, 2024, the Division Bench of the Supreme Court reiterated that the insurer has the burden of proving applicability of