UNIVERSAL INDUSTRIES AND COTTON MILLS LIMITED Vs. ABDUL REHMAN

JUDGEMENT

(1.) THIS revision petition has arisen out or a petition, filed under section 33 of the Arbitration Act, by the New Asiatic Insurance Co. Ltd., (hereinafter referred to as the petitioner- company) for challenging the validity of an agreement of arbitration. The petition was based on the following allegations :-

(2.) THE respondent No. 1 had motor vehicle No. MBG 1134 insured with the petitioner-company on the basis of policy No. M/AG 1)068. Respondent No. 1 had preferred a claim to the petitioner-company alleging that the insured vehicle had met with an accident on the 24th March 1958 and was completely burnt out. THE petitioner-company had rejected the claim after receiving the report of its surveyor. Respondent No. 1 had appointed respondent No 2 as arbitrator for the determination of the dispute of his claim. THE agreement of arbitration contained in the insurance policy had become void as respondent No. 1 had misrepresented to the petitioner-company that the carrying capacity of the vehicle was 20 passengers, whereas actually the carrying capacity was 21 passengers.