NEW INDIA ASSURANCE CO LTD Vs. VINOD KUMAR

JUDGEMENT

(1.) THIS revision petition under Section 115 of the Code of Civil Procedure is directed against the judgment dated 22-3-1993 passed by Additional District Judge (I), Kangra at Dharamshala whereby the appeal of the respondent Vinod Kumar Sharotria was accepted, the judgment dated 3-8-1992 by Senior Sub-Judge, Kangra at Dharamshala was set aside and his application under Section 20 of the Arbitration Act was accepted. The Additional District Judge issued the following directions :-

(2.) THERE is no dispute that truck No. HPK 1832 belonging to respondent was insured with the petitioner-1 Insurance Company vide policy No. 4584300302 Ex. PW1/B. The said truck met with an accident on 8-12-1986 at Gambar in district Bilaspur and the respondent lodged claim for total loss of the truck with petitioner-I Insurance Company. According to the respondent, he was entitled to an amount of Rs. 1,80,000.00 for which the truck was insured as its total loss. The petitioner-1 Insurance Company paid an amount of Rs. 1,39,000.00 on 12-8-1987 against receipt Ex. PW-1/C. THEREafter, on 28-5-1988 the respondent filed application under Section 20 of the Arbitration Act with prayer that petitioner-1 Insurance Company be directed to produce the arbitration agreement and Arbitrator may be appointed to resolve the dispute between the parties in respect of quantum of compensation to be paid to the respondent under the policy. The case set up by respondent was that he was entitled to an amount of Rs. 1,80,000.00 for which the truck was insured as compensation for total loss of the truck, whereas, the petitioner-1 Insurance Company had paid to him only an amount of Rs. 1,39,000.00, as such, difference has arisen in respect of quantum to be paid under the Insurance Policy which is liable to lie resolved by Arbitration as provided under Clause 8 of the Insurance Policy.

(3.) THE trial court dismissed the application holding that after payment of the amount of Rs. 1,39,000.00 against receipt Ex. PW-1/C as full and final settlement of the claim of the respondent on account of total loss of the truck, no dispute survived between the parties which is liable to be referred to Arbitration. THE findings of the trial court were set aside by the Additional District Judge who has held that dispute has arisen in respect of the difference of the amount of compensation payable to the respondent which is to be resolved by arbitration as provided under Clause 8 of the Insurance Policy Ex. PW 1/D. Now, the petitioners have challenged the decision of the Additional District Judge by this revision petition.