Consumer Protection – Insurance Policy – Exclusion clauseexempting the insurer from liability – When attracted – MunicipalCorporation demolished the front portion of the building owned bythe insured – Claim of the insured that it was carrying on the businessof sanitaryware in the premises and as a result of the demolition, itsuffered damage of Rs.19.55 lacs – Insurer contested the claim ona policy of insurance obtained by the insured which containedexclusion exempting the insurer from liability for loss arising fromthe destruction of property caused “by order of the government orany lawful authority” – Claim allowed by the State Commission –Affirmed by the High Court – On appeal, held: Clause V of theinsurance policy contains an exclusion, where the destruction ofthe property has been caused “by order of the government or anylawfully constituted authority” – Expression “by order of” meansunder the authority of government or of a lawfully constitutedauthority – Municipal Corporation is indeed a lawfully constitutedauthority, being a statutory authority under the 2000 Act – There isno dispute that the demolition was carried out by the MunicipalCorporation – Hence the basis on which the claim was allowed wasfundamentally flawed – Since, the destruction was by order oflawfully constituted authority, thus, exclusion under the policy ofinsurance was attracted – Impugned judgment of the High Courtset aside – Complaint filed by the insured before the State Commissionstands dismissed – Jammu and Kashmir Municipal Corporation Act2000 – s.229.