CHARANJIT LAL SODHI Vs. ALEDONIAN INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) JUDGMENT--

(2.) THIS Civil Revision was filed against the judgment of Mr. M. L. Jain Additional District Judge, Delhi, dated 30-7-1966, in Miscellaneous Civil Appeal No. 20 of 1966, by which he confirmed the order of Mr. R. K. Synghal, Sub-Judge, 1st Class Delhi, dated 1-2-1966 passed in an application under sections 33,5,11 and 13, of the Arbitration Act.

(3.) ON the other hand, Mr. Harish Chandra, the learned counsel for respondent relied upon the decision in Newzea land Insurance Company v. Nagpal Hosiery Factory. A similar condition was construed in the said decision by Bhandari, C.J. and Dulat, J. and the learned Judges held that where the arbitration clause is confined only to differences touching the amount of loss or damages and does not extend to differences concerning the liability of the company, the question relating to the liability is not within the scope of the arbitration agreement. In that case an application under section 20 of the Arbitration Act, praying that the agreement to refer the dispute to arbitration contained in an insurance policy, be filed in Court, the trial court directed that the question of loss or damage arising out of the policy should be referred to an arbitrator. The said decision of the trial Court was upheld on appeal by a learned single Judge of the High Court. Against that decision, a Letters Patent Appeal was filed. It was in that Letters Patent Appeal that the above mentioned view was taken by the Division Bench. In taking the view that the dispute which had arisen between the parties was not within the scope of the arbitration agreement, the learned Judges. observed as follows :