The court upheld the arbitration agreement, resolving disputes over an insurance claim valuation through arbitration, ensuring all defenses remain available for the arbitrator.

ORDER (Oral)

(Video-Conferencing)

1. This is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 ("the 1996 Act", in short), for reference of the disputes between the parties to arbitration. The substratum of the disputes stands set out in sub-paras (b) to (z) of Para 1 of the petition, which, for ready reference, are reproduced thus:

"b) The Petitioner, Panchanan International (Private) Limited, is a company incorporated under the provisions of the Companies Act, 1956 having its registered office at CB-374, Main Ring Road, Narayana, opp. Maruti Service Station, New Delhi-110028. The Petitioner inter alia is a wholesale trader and distributor of readymade garments, undergarments of various brands since 1998 in New Delhi and has ventured in online sales of branded products.

c) The Petitioner was incorporated in the year 1998 and is one of the leading distributors/suppliers of wholesale garments and undergarments in Delhi and Uttar Pradesh.

d) The present Petition is being filed for, and on behalf of the Petitioner by Mr. Naveen Goel who is duly authorized to file, institute, sign and verify the same on behalf of the Petitioner by virtue of Board Resolution dated 18/01/2013.

e) The Respondent, The Oriental Insurance Company Limited, is a company incorporated under the provisions of the Companies Act, 1956 and having its registered office at Oriental House, A-25/27, Asaf Ali Road, New Delhi-110002. The Respondent is an Insurance Company that provides various types of general insurance covers to cater to the needs of both the urban and rural population of India.

f) As per its business model, the Petitioner purchased garments from reputed brands and sold them to showrooms in its territory as well as to online sale platforms. As per the agreements between the Petitioner and the brands regarding the stock, the Petitioner was the owner of the stocks and had full discretion to dispose off the stock purchased by it from such brands. Under the said agreements, the Petitioner was entirely responsible for the safety and security of the stocks and was required to insure the stocks it its possession. With a view to protect its stocks, the Petitioner purchased a Standard Fire and Special Perils Floater Insurance Policy numbered 215502/11/2017/53 ("The Policy") on 10.05.2016, from the Respondent, upon payment of a premium of INR 2,50,326/- (Indian Rupees Two Lacs Fifty Thousand Three Hundred and Twenty Six Only).

g) As per the Policy, the Respondent had insured the Godowns and Silos of the Petitioner for risks and losses up to an amount of INR 30,00,00,000/- (Indian Rupees Thirty Crores) in case of any damage and/or destruction caused by Fire. Since the nature of the Policy was floater, Godowns and Silos of the Petitioner situated at four different locations were insured against risks. In addition to the Basic Fire Cover, the Petitioner had also purchased an additional cover of INR 30,00,00,000/- (Indian Rupees Thirty Crores), for risks from Fire and Shock damage caused as a result of Earthquakes. The policy was brought out for a period of one year and was valid up till 09.05.2017. As per the terms of the Policy, the four locations that were insured were:

i. CB-374, Ring Road, Basement, GF, FF, SF, Narayana, Indra Market, New Delhi-110028,

ii. Godown, CB-380, Ground Floor, Ring Road, Narayana, Indra Market, New Delhi-110028,

iii. Godown, B 98-99, Sector-6, 1st Floor, Noida, Uttar Pradesh-201301, and

iv. Shed at 53/73, Nangli Poona, Opp-DIRD College, GTKarnal Road, Delhi-110036.

h) That the warehouse of the Petitioner situated at Shed No. 53/73, Nangli Poona, GT Karnal Road, Delhi-110036 ("the Godown") caught Fire on 25.04.2017 at around 21:10 hours, as a result of an ele