Kapil purchased an automobile service station from Vimal. The purchase price included the costs of building, equipment and other assets. The business was financed by a loan taken by Kapil from a scheduled bank, which als

Kapil purchased an automobile service station from Vimal. The purchase price included the costs of building, equipment and other assets. The business was financed by a loan taken by Kapil from a scheduled bank, which also held a mortgage of the building. Kapil, after purchase, converted one of the car-repair bays into a quick-service restaurant. Kapil had secured an insurance cover on the property but did not disclose to the insurer about the conversion. Six months after the commencement of the business, a car undergoing servicing at the station caught fire and damaged the roof over a bay in the service station area. From the above information, answer the following questions with reasons in brief: Investigation into the fire accident revealed that the car owner knew that the vehicle's gas tank had a leak but this was not disclosed to Kapil when the car was left for service. Will the principle of subrogation apply in this case ?