TIMBER PVT LTD Vs. SKANDIA INSURANCE CO LTD

JUDGEMENT

(1.) M /s Timber Private Ltd. have moved this Court with a petition under section 20 of the Arbitration Act for filing an agreement and referring the dispute to the Arbitrator. The case of the petitioner is that he got insured the timber stocks against a fire Insurance Policy with the respondent. On 20th December, 1970 a devastating fire broke out in the compartment of the jungle and the entire stock of timber lying covered under the said Insurance Policy was burnt down. The respondents office was also burnt down. In pursuance of the petitioners communication the respondent deputed surveyors. The surveyors submitted the report but no communication was received from the respondent and the matter was considerably delayed. Thereafter a notice was sent to the respondent but there was no response. The petitioner has averred that under clause 18 of the Policy conditions any difference arising as to the amount of any loss or damage is to be referred to the decision of the Arbitrator. The petitioner while invoking this clause of the policy has requested the Court to appoint an Arbitrator in the case.

(2.) THIS application was resisted by the respondent inter alia on the ground that the Court at Jammu has got no jurisdiction to deal with this application as under clause Q of the Warranty all disputes or claims are to be settled and paid at Bombay and all legal proceedings in respect of any such claim are to be conducted in Bombay in a competent Court.

(3.) THE following preliminary issue was, therefore, raised in the case: - "Whether in view of Warranty Q of the fire Insurance Policy this Court has jurisdiction to deal with the present application -