MERCURY RUBBER MILLS Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) -

(2.) MESSRS Mercury Rubber Mills (the petitioner) had entered into a contract of insurance with The Oriental Insurance Co. Ltd, (the respondent) vide policy No. 2130/302/02211/44/05/80/00034, dated 29th Decem- ber, 1980 whereby the respondent had agreed to pay to the petitioner all losses of profit which the petitioner might suffer due to break down of its machinery installed at its factory premises situated at 35th K..M. milestone, G.T. Karnal Road Rasoi, District Sonepat, Haryana. The insurance policy had an arbitra- tion clause which reads as under :

(3.) THE contention of Dr. Sidhu on behalf of the petitioner, on the other hand, is that mere acceptance of the cheques and their encashment does not mean that the cheques were accepted in discharge of the whole claim and that the fact that the petitioner while returning the vouchers and thereafter while claiming cheques had been asking the respondent to furnish the details of calculation for verification by the petitioner shows that the amounts had not been accepted in full and final settlement of the claim. It is further contended that the dispute as to whether or not the petitioner had accepted the above said three cheques in full and final settlement of their claims is itself a dispute which has to be decided by the arbitrator and not by the court. For the first contention reliance ha.s been placed on the decision in case Union of India & Am. v. M/s. Gangaram Bhagwandas, AIR 1977 MP 215, Messrs Amar Nath Chand Prakash v. Mcssrs Bharat Heavy Electricals Limited, AIR 1972 All 176 and Dipchand Golecha v. Mis. M. Abhechand and Co., AIR 1962 Cal. 166.