P.B.Mukharji, J. - (1.) THIS is an application by the National Fire and General Insurance Company Limited to set aside the Award dated 20-3-1954.
(2.) THE dispute arises in respect of a claim for loss of jute by fire at a godown at Beldanga on 30-8-1952 at about 9 P.M. THE jute was insured with the applicant Company under two different Fire Insurance Policies NOB. 1/1/2175 and 1/1/ 1854 respectively for Rs. 4,000/- and Rs. 13,200/-. Under Policy No. 1854 dated 25-9-1951 there were two insured, namely Joti Krishna Chakravorty and the Union of India in its Rehabilitation Finance Administration, both of whom are respondents to this application. THE Union of India became interested in the policy in this way. Respondent Chakravorty who was a refugee from Eastern Pakistan took a loan of Rs. 12,000/- from the Government of India in its Rehabilitation Finance Administration and partly with his own fund augmented with the loan started a business in jute in Beldanga and it was in that connection that the Government of India appeared as a coinsured interested in the jute under the policy because the jute was charged with the liability to pay the Government loan. Under Policy No. 2175 dated 28-6-1952 respondent Chakravorty was alone the insured for Rs. 4,000/-. THE respondent Union of India does not appear to contest this application. THE opposition comes from respondent Chakravorty. Each of the said policies contained an Arbitration clause. The material part of the Arbitration clause is in the following terms: "If any difference arises as to the amount of any loss or damage, such difference shall independently of all other questions be referred to the decision of an arbitrator to be appointed in writing by the parties, in difference, or if they cannot agree upon a single Arbitrator, to the decision of two disinterested persons as Arbitrators. In case of disagreement, between the Arbitrators, the difference shall be referred to the decision of an Umpire who shall have been appointed by them in writing before entering on the reference and who shall sit with the Arbitrators and preside at their meetings. The costs of the reference and of the Award shall be In the discretion of the Arbitrator. Arbitrators or Umpire making the Award. And it is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the Award by such Arbitrator, Arbitrators or Umpire of the amount of the loss or damage, if disputed, shall be first obtained."
(3.) THE parties failed to agree upon a single Arbitrator to decide all their differences and disputes. THE respondent, Chakravorty appointed Mr. H. Datta, an Accountant, as Arbitrator. THE Union of India who was a party to one of the insurance policies aforesaid, when requested to appoint an Arbitrator, wrote on 14/17-8-1953 to say: "THE administration is unwilling to appoint any arbitrator from their side since Shri Jyoti Krishna Chakravorty has appointed his Arbitrator." THE insurance company appointed Mr. A. C. De as their Arbitrator. THE two Arbitrators appointed one Mr. P. K. Ghosh as Umpire. On or about 25-8-1953 the arbitration proceedings started. By 14-3-1954 the Arbitrators disagreed and the dispute was referred to the Umpire. THE Umpire made his Award on 20-3-1954. THE material portion of the Award of Umpire is as follows : "(a) THE National Fire and General Insurance Co. Ltd. do pay to Jyoti Krishna Chakravorty in full settlement of his claim under Policy No. 1/1/1854 the sum of Rs. 12,342/-. (b) THE National Fire and General Insurance Co. Ltd. do pay to Jyoti Krishna Chakravorty in lull settlement of his claim under Policy No. 1/1/ 2176 the sum of Rs. 3,695/8/-. (c) THE National Fire and General Insurance Co. Ltd. do pay to Jyoti Krishna Chakravorty the sum of Rs. 6,582/- as the costs of the Reference and this my Award.";