The assured was not in the possession of property, but his relation to it was such that he may incur liability in respect of the property being damaged, NOW v DOL was concerned with dispute relating to defective equipment supplied by NOW. Whilist NOW sought to recover in respect of unpaid invoices. DOL counterclaimed, inter alia, that the plaintiffs(NOW) had no insurable interest in any of the insured property after they been delivered to DOL. Not surprisingly, Colman J ruled that NOW had an insurable interest by reason of their potential liability in respect of loss or damage in the equipment.