NATIONAL INSURANCE COMPANY LIMITED Vs. OPERA CLOTHING

JUDGEMENT

(1.) BY this petition filed under section 34 of the Arbitration and Conciliation Act, 1996 (for short the said "Arbitration Act"), the petitioners have impugned the arbitral award dated 20th March, 2012 rendered by the learned arbitrator allowing some of the claims made by the respondents. Some of the relevant facts for the purpose of deciding this petition are as under :

(2.) THE petitioners were original respondents in the arbitration proceedings, whereas the respondents herein were the original claimants. The respondents have been carrying on business of manufacture of apparels and readymade garments at its units at Mumbai and Daman. The respondents had obtained from the petitioners Unit No.260201, Mumbai two policies viz. (1) Standard Fire and Special Perils Policy No.260201/11/05/3100000004 insuring the Machinery, Electric Installations, Showroom, A.C., Computers, Printers, Scanners, Fax Xerox, Packing Materials lying at Lower Parel, Kurla and Daman for an amount of Rs.2,62,70,000/ - and (2) Floater Policy No.260201/11/05/3100000005 insuring the stock of fabrics and readymade garments of all kinds' finished, semi finished and unfinished goods, raw materials pertaining to the respondents business lying at three locations viz. Lower Parel, Kurla and Daman for a sum of Rs.2,73,30,000/ -. Both the policies were effective from 7 th April, 2005 to midnight of 6th April, 2006.

(3.) ON 26th July, 2006, due to heavy rains and floods at Mumbai, the entire premises of the respondents was immersed in water. By a letter dated 27th July, 2005, the respondents informed the petitioners that there was a damage to the machineries and rawmaterials in their factory situated at Kurla on account of flooding due to heavy rains in Mumbai on 26th July, 2005 and requested the petitioners to depute the surveyor to survey the damage. The petitioners appointed their surveyor M/s.Rashmi Desai and Associates to assess the loss at the factory premises of the respondents at Kurla. On 28th July, 2005, the said surveyor visited the factory premises of the respondents, however, could not carry out a detailed survey on that day as the rain water had accumulated in the insured premises, which was required to be removed. It is the case of the respondents that the surveyor accordingly instructed the respondents to segregate the damaged material from the sound material and to prepare a complete detailed list of damaged sock and other properties and to keep all the relevant documents pertaining to loss ready and on completion of the same to inform the said surveyor by following the procedure as stated in the policies.