E-SPRING BUILDING SYSTEMS (INDIA) PRIVATE LIMITED Vs. REGIONAL MANAGER TATA AIG GENERAL INSURANCE CO. LIMITED

JUDGEMENT

(1.) PETITION is under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short 'the Act'), seeking for appointing M/s. Kodigi and Company, Sri Girish Kodgi, Advocate, 5/1, SLN Mahal, I Floor, Link Road, 3rd Cross, Malleshwaram, Bangalore -560003, as the arbitrator to enter into reference and adjudicate the dispute between the parties.

(2.) RESPONDENT -M/s. Tata AIG General Insurance Company Limited it appears had issued an "All Risk Insurance Policy" in favour of the Petitioner and that a certain claim has been put forth by the Petitioner under the terms of the policy, but the claim itself having been rejected by the Respondent, Petitioner it appears had issued legal notice and had sought for conciliating the matter. Respondent not being enthusiastic had suggested for appointment of an arbitrator in terms of a clause in the policy itself, but the Respondent being lukewarm even to such a suggestion had even got a legal notice issued, copy at Annexure -B, dated 31.2.2006, calling upon the Respondent for appointment of an arbitrator, but the Respondent still remained mute silent, hence the Petitioner has come up with this petition praying for intervention of the Court invoking Section 11(6) of the Act.

(3.) THE arbitration clause as contained in the policy reads as follows: Clause 7: If any dispute or difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to or, if they cannot agree upon a single arbitrator within 30 days of any party invoking Arbitration, the same shall be referred to a panel of three Arbitrators comprising of two Arbitrators -one to be appointed by each of the parties to the dispute/difference, and the third Arbitrator to be appointed by such two Arbitrators and arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996. It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as hereinbefore provided, if the company has disputed or not accepted liability under or in respect of this policy. It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this Policy that the award by such Arbitrator/Arbitrators of the amount of the loss or damage shall be first obtained.