Mr. Sameer Nandwani, Ms. Jadaun, Ms. Heeba Niyati Ansari and Ms. Sanya Arora, Advocates v. UNITED INDIA INSURANCE CO. LTD

Judgment

1. The present Appeal, filed under Section 37 of the Arbitration & Conciliation, 19961, read with Section 151 of the Code of Civil Procedure, 1908, assails the Judgment dated 13.08.20092 passed by the learned Single Judge of this Court in OMP No. 609/2007, titled M/s. United India Insurance Co. Ltd. v. Karan Chand Goel. By the said Judgment, the objections filed by the Respondent herein under 1 A&C Act 2 Impugned Judgement Signature Not Verified Digitally Signed By:HARVINDER KAUR BHATIA Signing Date:15.10.2025 14:06:37 FAO(OS) 426/2009 Page 1 of 24 Section 34 of the A&C Act were allowed, resulting in the setting aside of the Arbitral Award dated 01.08.2007 3 passed by the learned Arbitrator. 2. Under the said Arbitral Award, the learned Arbitrator had allowed the claims of the Appellant herein to the extent of Rs. 40,84,716.25/-, together with interest at the rate of 9% per annum on the awarded sum with effect from 24.10.2001 until the date of actual payment, in addition to the costs of arbitration. 3. The controversy arising for determination in the present Appeal is narrow and pertains to the interpretation of Clause 6(b)(ii) of the Insurance Policy 4 issued by the Respondent in favour of the Appellant. The relevant clause reads as follows:- “6. ………. (b). ……….. (ii). In no case whatsoever shall the Company be liable for any loss or damage after the expiry of 12 months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration; it being expressly agreed and declared that if the Company shall disclaim liability for any claim hereunder and such claim shall not within 12 calendar months from the date of the disclaimer have been made the subject matter of a suit in a court of law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.”

4. While deciding in favour of the Respondent, the learned Single Judge placed reliance on the judgment of the Hon‟ble Supreme Court in H.P. State Forest Co. Ltd. v. United India Insurance Co. Ltd.5, which itself followed the earlier decision in National Insurance Co. Ltd. v. Sujir Ganesh Nayak & Co.6.