From canteen workers to arbitration, here are the key court orders | Business Standard Column–08.05.2018

If an insurance policy states that repudiation of a claim or denial of the insurer’s liability cannot be referred to arbitration, the insured person cannot invoke arbitration and the remedy is a civil suit. The Supreme Court declared so last week while quashing the judgment of the Orissa High Court in the case, Oriental Insurance Co vs Narbheram Power and Steel Ltd. The company had taken an all-risk policy for its factory. In a cyclone it suffered damage, leading to the claim. The insurance company rejected it. The power company moved the High Court for arbitration. The High Court appointed a retired judge as arbitrator. Oriental appealed to the Supreme Court successfully. One of the terms of the policy was that “no difference or dispute shall be referable to arbitration if the company has disputed or not accepted liability”. The judgment stated denial of the claim itself would not amount to a ‘dispute’ which calls for arbitration. The court did not examine the question whether such a condition was void as it was not argued.

via From canteen workers to arbitration, here are the key court orders | Business Standard Column

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s