NATIONAL INSURANCE CO LTD Vs. G C RAY

JUDGEMENT

(1.) INSURER is appellant. Challenge has been made to the order of the Court making the award rule of the Court. Respondent is the owner of the Ambassador car bearing registration No. ORU -5823 and it is admitted that the car was insured with the appellant. The converge in the policy was to the tune of Rs. 23,000/ -. On 17.3.1979 in between Ratanpur and Berhampur the vehicle in question met with an accident, as a result of which the car was damaged. The claimant called upon the appellant to pay damages as per the contract between the parties and a Surveyor as per the Insurance Policy was deputed to estimate the damages. As the insured did not agree with the quantum of damages offered by the insurer, the matter was referred to an Arbitrator as per Clause 7 of the agreement i.e. the Insurance Policy.

(2.) THE learned Arbitrator after giving notice to both sides entered into reference. Both the sides adduced their evidence before learned Arbitrator who after considering the materials on record awarded a sum of Rs. 23,600/ - with interest. The award was filed in the Court to make it rule of the Court. The insured filed objection under Section 30 of the Arbitration Act taking the specific ground that since the vehicle was insured for a sum of Rs. 23,000/ - learned Arbitrator did not have jurisdiction to award a sum of Rs. 23,600/ -, therefore, there is error apparent on the face of record and the award which has been made rule of the Court is not sustainable.

(3.) ATTACKING the order dated 2.5.1989 of the learned Subordinate Judge in O.S. No. 94 of 1985 in which the award passed by the Arbitrator was made rule of the Court, learned Counsel for the appellant submits that since the contract between the parties was to the tune of Rs. 23,000/ - the award which is to the tune of Rs. 23,600/ - is without jurisdiction.