(1.) THIS is an appeal by the Great American Insurance Company Limited against the order of the lower Court under Section 20 of the Arbitration Act calling on the parties to nominate their arbitrators.
(2.) THE application was filed under Section 20 by Dina Nath Suri on the allegation that under a policy which remained in force from the 6th of March 1947 to the 6th of March 1948 he had insured his house at Rawalpindi for Its. 40,000/- and household effects contained therein for Rs. 10,000/-with the defendant Company and that in consequence of the disturbances he had been forced to leave Rawalpindi and flee to this country on the 1st of August 1947 leaving behind his house and furniture, etc. He had learnt in January 1948 that during the month of September 1947 his household goods had been looted by Muslims. He thereupon preferred a claim to the Company in respect thereof and after a lengthy correspondence the Company by its letter dated the 13th of April 1949 rejected his claim informing him that as a result of a report from Messrs. Sinclair Murray and Company and from investigations carried out on behalf of the Company it appeared that the premises were neither looted nor burnt. The petitioner alleged that he had received this letter which came from Calcutta by registered acknowledgment post on the 17th of April 1949 and he filed his application under section 20 of the Act on the 16th of July 1949 claiming a reference to arbitration in accordance with the terms in Clause 18 of the policy.
(3.) THE other points which arise in the appeal relate to the effect of Clauses 13 and 19. The relevant portion of Clause 13 reads-