ARIHANT CONVERTERS Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) THE dispute in this case relates to the quantum of amount payable by the respondent Insurance Company in respect of a claim made against them by the complainant who had taken out four policies of Insurance in respect of his factory premises, godowns, stock etc. There was an incident of fire in the complainant's factory premises on 20th of July, 1989. The liability of the Insurance Company to make good to the complainant the loss caused by the fire is not disputed. The parties are, however, at variance on the question as to what exactly is the quantum of loss sustained by the complainant as a result of the fire.

(2.) THE complainant has come before this Commission seeking to recover from the Respondent Insurance Company a sum of Rs. 19,62,881.00 alleging that to be the total quantum of loss sustained by him. According to the respondent company the complainant himself had agreed to accept a sum of 1,25,000.00 in full and final settlement of all his claims under the contracts of insurance as per his letter dated 16th December, 1989. The Counsel for the respondent represented to us that the Insurance Company had sent a voucher to the complainant for Rs. 1,29,162.00 on 1st June, 1990 but it was not accepted by the complainant. However, it is not necessary for us to resolve the merits of this controversy since both sides are now agreed that this is a case which should more appropriately be referred to arbitration under Clause 13 of the Contract of Insurance. In view of this submission jointly made before us by the Counsel appearing on both sides we decline to go into the merits of this Original Petition and refer the parties to the remedy of arbitration provided for under Clause 13. The complainant may immediately lake steps under Clause 13 to initiate arbitration proceedings and after that is done we expect that the arbitrator or arbitrators who may be placed in charge of the dispute will conclude their deliberations and make the award within a period of six months from the date on which the reference to arbitration is made. The Original Petition is disposed of with the above observations.