ORIENTAL INSURANCE COMPANY LIMITED Vs. MARIAMMA SCARIA

JUDGEMENT

(1.) THE appellants are an Insurance Company which has challenged by this appeal the judgment of the Civil Judge, Senior Division in Arbitration Special Suit No. 119 of 1991, by which the Civil Judge, Senior Division rejected the objections filed by the Insurance Company and the award was made rule of the Court with further direction to draw the decree in terms of the Award.

(2.) IN so far as the facts of the case are concerned, respondent No. 1 had taken an insurance policy from the appellants in respect of 2500 rubber plants for a period from 13th January, 1987 to 13th January, 1988 for Rs. 3,00,000/ -. Thereafter the policy was renewed for one more year and while the policy was alive, a fire broke out in the rubber plantation. The respondent No. 1 lodged a claim before the appellants for claiming insurance under the policy. The appellants assessed the loss for an amount Rs. 91,500/- and showed their willingness to pay this amount of compensation. The respondent No. 1 was not ready to accept the same and a dispute arose.

(3.) IN the Insurance Policy there was a clause to refer the dispute, in case the appellants accepted their liability to pay, to an arbitrator. The appellants appointed their arbitrator, so also respondent No. 1. Both the arbitrators could not concur. Both of them gave different findings. The arbitrator appointed by the Insurance Company/appellants fixed the damages at Rs. 91,500/- whereas the arbitrator appointed by the respondent No. 1 fixed the compensation at Rs. 2,00,000/- and odd. The matter was therefore referred to the Umpire, who gave his award in favour of the respondent No. 1 for Rs. 2,37,500/- with interest at the rate of 15% per annum from the date of the award till the date of final payment or till the date of the decree whichever is earlier. The payment was to be made through the co-claimant Indian Overseas Bank with whom the plantation was mortgaged.