NEW INDIA ASSURANCE CO. LTD., REGIONAL OFFICE UNITY BUILDING ANNEXE MISSION ROAD, BANGALORE, R/BY ITS REGIONAL MANAGER SRI S. SHANKAR Vs. M/S SUNSHINE CASHEWS LTD., PLOT NO. 171, (E) BELUR INDUSTRIAL AREA DHARWAD, JUSTICE SRI S. VENKATARAMAN (RE

JUDGEMENT

(1.) THE appellant is questioning the concurrent findings of the award passed by the Arbitrators before the Arbitral Tribunal, Bangalore, dt. 15.4.2003 which has been confirmed by the City Civil Judge, Bangalore in AS NO. 37/2003 Dt. 3.10.2009. The facts leading to this case are as hereunder: The 1st respondent is carrying on business in processing of Quality Cashew Kernels having its factory at Belur Industrial Area, Hubli. The 1st respondent had obtained two Fire Insurance Policies from the Plaintiff, one to cover the stock and stock in process, raw cashew and cashew kernels and another policy covering the plant and machinery, factory buildings, godowns, sheds, electrical fittings, furniture and fittings etc. On 25.2.2001 there was a fire accident in the factory of the 1st respondent which resulted in loss of stock and damage to the building. The appellant's Surveyors examined the extent of loss and assessed the value of the loss suffered by the 1st respondent. According to the Surveyors report, the loss suffered by the 1st respondent was to an extent of Rs. 60,43,453/ - in respect of the stock in trade and Rs. 4,96,286/ - towards the damage caused to the building. The valuation of the Surveyor was not accepted by the 1st respondent. In view of the terms and conditions of the policy, the matter was referred to the Arbitrators. Accordingly, the Arbitral Tribunal considering the claim statement made by both the parties and recording the evidence held that the 1st respondent was entitled for a sum of Rs. 10,87,554/ - being the additional sum towards the loss of raw materials which is inclusive of cashew and cashew kernels and further held that the respondent is entitled to recover a sum of Rs. 13,44,529/ - towards interest and further ordered that the respondent -1 is entitled for a total award amount of Rs. 26,34,538/ - and stamp duty and interest from 15.4.2003 at 18% p.a. till the date of payment. The award passed by the Arbitral Tribunal dt. 15.4.2003 was questioned by the appellant in AS No. 37/2003 before the City Civil Judge, Bangalore. The arbitration suit filed by the appellant u/s 34 of the Arbitration and Conciliation Act was dismissed by the City Civil Judge on 3rd October 2009 confirming the award passed by the Arbitral Tribunal. Challenging the concurrent findings, the present appeal is filed.

(2.) WE have heard the learned counsel for the parties.

(3.) PER contra, the learned counsel for the respondent contends that all the three grounds urged by the appellant are to be discarded. According to him based on the documents produced by the respondent, the Arbitral Tribunal has come to the conclusion what was the value of the cashew and cashew kernels purchased by the respondent No. 1 and therefore the first point has to be rejected. He further contends that the value arrived at by the Arbitral Tribunal in regard to loss caused in the fire accident is a question of fact and the same cannot be interfered with in a second appeal u/s 37 of the Act He further contends that the interest has been awarded at 18% based on the evidence let in by the 1st respondent that cashew and cashew kernals had purchased by the 1st respondent by borrowing loan from the Bank and that the 1st respondent was made to pay the interest to its bankers without utilising the raw material. He lastly contends that the interest awarded from the date of the award till the payment cannot be considered as a compound interest and that the 1st respondent is entitled to under the law. Therefore, he requests the court to dismiss the appeal.