ORIENTAL INSURANCE COMPANY LIMITED Vs. M/S NARBHERAM POWER AND STEEL PVT. LTD.
LAWS(SC)-2018-5-10
SUPREME COURT OF INDIA
Decided on May 02,2018

ORIENTAL INSURANCE COMPANY LIMITED Appellant
VERSUS
M/S Narbheram Power And Steel Pvt. Ltd. Respondents

JUDGEMENT

DIPAK MISRA,CJ - (1.) The respondent - M/s Narbheram Power and Steel Pvt. Ltd. - had entered into a Fire Industrial all Risk Policy No. 31150/11/2014/65 in respect of the factory situated on plot Nos. 11 and 13, Gundichapada Industrial Estate, District - Dhenkanal, Odisha. In October 2013, there was a cyclone named as "Phailin" which affected large parts of the State of Odisha. Because of the said cyclone, the respondent suffered damages which it estimated at Rs. 3,93,36,224.00. An intimation was given to the appellant-insurer and it appointed one Ashok Chopra and Company as surveyor which visited the factory premises on 20th and 21st November, 2013. A series of correspondences were exchanged between the respondent and the insurer. On 22.12.2014, the respondent commented on the surveyor's report and requested the appellant to settle its claim. As ultimately the claim was not settled, the respondent sent a communication dated 21.01.2017 intimating the appellant that it had invoked the arbitration agreement and requested it to concur with the name of the arbitrator whom it had nominated.
(2.) The appellant replied to the said letter repudiating the claim made by the respondent and declined to refer the disputes to arbitration between the parties. As the insurer declined to accede to the request made by the respondent, it filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for brevity, 'the 1996 Act') for appointment of an arbitrator so that he could, along with the arbitrator nominated by the respondent, proceed to appoint a presiding arbitrator to adjudicate the disputes and differences that had arisen between the parties.
(3.) The said application was contested by the insurer and the High Court, considering the language employed in Clause 13 of the policy and the reasons advanced while repudiating the claim of the claimant, appointed a retired Judge of the High Court as arbitrator. The said order is under assail by way of special leave in this appeal.;


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