Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Indian Arbitration Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration Act, 1940 (10 of 1940) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Indian Arbitration Act (X of 1940), s. 33-Arbitration clause-· Whether" dispute' "arises out of agreement"-Tests-Plea that agree• 1flt'11t is not applicable and does not subsist-No dispute about the· existence or validity or meaning-Jurisdiction of arbitrator-Application under s. 33-Maintainability. The appellant company insured a car belonging to respondent' No. 1 and issued a policy which contained, inter alia, the following_ terms:-"All differences arising out of this policy shall be referred to the decision of an arbitrator to be appointed by the parties • . . . . . . If the company shall disclaim liability to the insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration then the claim shall have been deemed to have been abandoned and shall not be recoverable." The car was lost, and the company through its Branch Manager disclaimed liability on· three different dates. The insured did not take any action in regard to the appointment of an arbitrator until more than twelve months after the last disclaimer by the company. The case of the company was that the insured must be deemed to have abandoned his claim by virtue of the contract of insurance policy while the respondent averred that there was never any valid disclaimer by the company of its liability as the Branch Manager had no authority to disclaim the liability and it could have been disclaimed only by the resolution of the company. The company presented the present application under sec. 33 of the Indian Arbitration Act praying for a declaration that the reference to arbitration was illegal and the award if made by the arbitrator would not bind the company. It was contended on its behalf that the arbitration clause had ceased to be operative and the question as to the existence and validity of the Arbitration agreement was triable by the court under sec. 33 of the Arbitration Act and not by the arbitrator. |
Judge | Hon'ble Mr. Justice Sir Saiyid Fazl Ali |
Neutral Citation | 1952 INSC 9 |
Petitioner | Ruby General Insurance Co. Ltd. |
Respondent | Pearey Lal Kumar And Another. |
SCR | [1952] 1 S.C.R. 501 |
Judgement Date | 1952-02-25 |
Case Number | 163 |
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