KHAN CHAND MALHOTRA Vs. RUBY GENERAL INSURANCE COMPANY LTD
LAWS(P&H)-1958-12-17
HIGH COURT OF PUNJAB AND HARYANA
Decided on December 02,1958

KHAN CHAND MALHOTRA Appellant
VERSUS
RUBY GENERAL INSURANCE COMPANY LTD Respondents

JUDGEMENT

- (1.) This revision petition by Khan Chand plaintiff is from the judgment of the Additional District Judge, Amritsar, dated the 22nd April, 1956, by which the order of the trial Court was set aside and the application of said Khan Chand under section 20 of the Arbitration Act seeking the arbitration agreement to be filed dismissed.
(2.) Khan Chand owned a truck which he got insured with Ruby General Insurance Company, Ltd., Calcutta, against third party risk for a period of one year, according to him, starting on 10th February, 1953. It appears that the said truck met with an accident on 12th February, 1953, as a result of which Sant Lal, the cleaner, died. The demand of the plaintiff on the terms of the insurance policy was for the sum of Rs. 2,400/-. The Insurance Company, however, disclaimed its liability principally on the ground that the insurance came into existence on 16th February, 1953, on which date the insurance contract was finally accepted and not on 10th February, 1953, as alleged by the plaintiff and that the company could not be made liable for an occurrence that took place on 12th February, 1953, before the contract of policy had come into existence.
(3.) The question that had been canvassed in the present proceedings is, however, whether the petitioner was entitled to the benefit of section 14 of the Limitation Act. The facts giving rise to the matter in question were as follows : The dispute having arisen regarding the claim of the petitioner, the plaintiff filed an application in the Court of Subordinate Judge at Jullundur on 11th February, 1954, under section 20 of the Arbitration Act praying that arbitration agreement be filed in Court and reference made to arbitrator as contemplated by one of the conditions of the contract between the parties as incorporated in the insurance policy. By its order dated the 19th February, 1955, the Jullundur Court came to the conclusion that it had no jurisdiction to try the matter and consequently returned the petition to Khan Chand for him to present the same to proper Court. This conclusion was arrived at in view of one of the terms of the insurance policy being that in the event of any dispute arising between the parties relating to the said contract, the matter was to be tried by the Courts at Amritsar only. The application was ordered to be returned to the plaintiff on 14th March, 1955. The plaintiff, however, managed to get it back on 11th March, 1955, and presented the same to the Subordinate Judge at Amritsar on the same day.;


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