Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 – s.11(4) and s.11(6)– Arbitration clause – Examination of – Respondent No.3 awardeda contract for design, construction and maintenance of bridge to aJoint Venture (JV) constituted by the Respondent Nos.1 and 2 –After commencement of work, an insurance policy was obtainedfrom the appellants-insurer covering the entire project – Duringconstruction, an accident occurred causing significant loss to thecontractor – A detailed claim for a sum was submitted by the JV tothe appellants – Appellants found the claim not payable – Disputearose between the parties – Respondent Nos.1 and 2 filed apetition u/s. 11(4) & 11(6) of the Act for appointment of arbitrator,which was allowed by the High Court – On appeal, held: Thesubject clause 7 of the insurance policy was hedged with apre-condition expressly predicating that no difference or disputeshall be referable to arbitration, if the appellants disputed or didnot accept its liability under or in respect of the policy – Arbitrationclause has to be interpreted strictly and such an arbitration clausewill get activated or kindled only if the dispute between the partiesis limited to the quantum to be paid under the policy and liabilityshould be unequivocally admitted by the insurer – That is thepre-condition and sine qua non for triggering the arbitrationclause – On facts, the appellants completely denied their liabilityand repudiated the claim of the JV in the communication to the JV– Thus, the dispute in question is non-arbitrable. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2018 INSC 732 |
Petitioner | United India Insurance Co. Ltd. & Anr. |
Respondent | Hyundai Engineering And Construction Co. Ltd. & Ors. |
SCR | [2018] 12 S.C.R. 1085 |
Judgement Date | 2018-08-21 |
Case Number | 8146 |
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