UNITED INDIA INSURANCE COMPANY LIMITED Vs. RISING ENTERPRISES

JUDGEMENT

(1.) Mr. Ali has filed this appeal challenging the order passed by learned State Consumer Protection Commission, (hereinafter to be referred to as the Commission) on 2-6-1994, wherein Mr. Ali has drawn the attention of the Commission that in view of conditions of Insurance policy and existing clause of Arbitration, the Commission had not to proceed in the matter unless and until the non-petitioner herein shall not exhaust said remedy as provided in the Insurance Policy.

(2.) Ld. Commission after hearing arguments of rival parties had passed the impugned order and it is this very order which is impugned in this appeal.

(3.) The first limb of argument of Mr. Ali is that the Hon'ble apex court had laid much emphasis that wherever there is arbitration clause existing in any Insurance Policy, the aggrieved person should avail the arbitration clause and even under the statute, it has a riding effect that whenever any party to the agreement have to seek redressal of the claims arising out of such Insurance policy or agreement, they have to first avail arbitration clause and in case any of them files the suit, the other person/party has the caveat to ask to court in which the suit has been filed or any proceedings filed to stop the proceedings and to ask the parties to avail the arbitration clause first. He has also referred to me Section 34 of the Arbitration Act which reads :-