Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration - Appellant kept jute stock which was insured - Appellant subsequently purchased more stock of jute and asked for increase in the value of the insurance policy |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration - Appellant kept jute stock, which was insured - Appellant subsequently purchased more stock of jute and asked for increase in the value of the insurance policy - This, according to insurance company was not accepted - Raw jute involved in a fire incident - Dispute whether the insured stock should be valued as on the date of the fire or on the date of purchase - Appellant produced evidence in the form of purchase receipts of the value of stock of jute which amounted to Rs. 7031- per quintal - However, this was not accepted in the survey done at the behest of the insurance company, the surveyors valued stock @ Rs.4041- per quintal by adopting the spot rate fixed in the market - Appellant invoked arbitration proceedings - /11 view of divergence of opinion between the arbitrators, the matter was referred to an Umpire - Umpire concluded that the insurance compa11y had accepted a11d agreed to the insured'.~ letter and property covered under policy in question stood increased in value and simply because an endorsement letter was not issued before the date of incidental, it would not mean that insurance company can go back from its commitment - Courts below found the award passed by the Umpire perverse - Insurance company contended that Umpire misconducted himself and that when insurance policy is written, it can be amended only in writing and not by the conduct of the parties - Held: The Umpire took a possible view in the facts of the case after having analysed the evidence before him - Though the insurance policy was to be amended in the manner known to the law and that too in writing between the parties, yet estoppel by conduct was a ground the Umpire was well within his legal ken to hold - Further, in absence of anything to rebut the evidence produced on behalf of the appellant that the purchase price of the jute would reflect the market value as on the date of the fire, equally the umpire was well within his legal bounds in arriving at conclusion, on facts, that the sum of Rs. 7031- per quintal would reflect the market value of the jute stockas on the date of fire - Insofar, as grounds for challenge areconcerned, no legal error apparent on the face of the Umpire'saward or misconduct in the sense of legal misconduct - Thus, theaward by Umpire resuscitated. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2017 INSC 1054 |
Petitioner | Vishnu Bhagwan Agrawal & Anr. |
Respondent | National Insurance Co. Ltd. |
SCR | [2017] 10 S.C.R. 278 |
Judgement Date | 2017-10-26 |
Case Number | 4661 |
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