sameee said:
... Now, my question is Why CB would be 250% of full load current? ...
Here's my understanding - perhaps it will help:
The motor is protected from overload by design. One selects the motor so that it will adequately provide all the power required for all normal loading, with out unduly overheating. The thermal overloads protect the motor windings from thermal damage should the mechanical system fail, say like bearings dragging, and push the motor into overload. The circuit conductors are also protected from overload by the thermal overloads. (Assuming you are under the NEC - but also likely true for the rest of the world) The overloads are selected to trip inside of the motor thermal damage curve. The conductors are selected such that the thermal damage curve is also outside of the overload trip.
The primary purpose of the circuit breaker is not to protect the motor or the conductors in the event of a mechanical failure. That's the job for the overloads.
If the motor faults internally amd disentigrates into a molten pile of slag, there is no motor to protect - only a fire to put out. If the cable suffers a forklift attack, again, no cable to save, only a fire to put out.
The primary purpose of the CB is to protect the structure - limit the electrical heat input keeping the fire going.
The CB is selected such that the motor will reliablily start. From the OP, I suspect the CB will be a UL489. You should be able to find a trip curve and download. Print out an 11x17. Hand plot an expected motor starting curve. The motor could draw 4 to 6 times FLA for the starting time. The CB has to be outside of the motor starting curve.
Hope this helps
So sayeth the worm