ORIENTAL INSURANCE COMPANY LIMITED Vs. UNITECH LIMITED

JUDGEMENT

(1.) This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the said Act'). The first prayer in the application is that this court ought to determine the arbitrability of the dispute and declare that the dispute with regard to denial of liability pursuant to repudiation of the insurance policy is outside the purview of the arbitration clause contained in the Contract of Insurance. The second prayer is that an arbitrator be appointed on behalf of the petitioner for determination of the quantum of loss, if any, suffered by the respondent. The normal residual prayer has also been made. The question that arises at the outset is whether the present application is at all maintainable and whether it can be construed as an application under Section 11 of the said Act ?

(2.) The parties had entered into a contract, the details of which are not necessary for the present. Clause 7 contained the arbitration clause which reads as under:-

(3.) The facts are that on 08.11.2005, the respondent No. 1 (Unitech Ltd) issued a notice invoking the arbitration clause. The said arbitration clause was invoked in the following manner:-