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IN THE HIGH COURT OF DELHI AT NEW DELHI
AVNEESH JHINGAN
Iffco Tokio General Insurance Company Ltd. – Appellant
Versus
Unison hotels pvt. Ltd. – Respondent
JUDGMENT :
AVNEESH JHINGAN, J.
1. This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') challenging the arbitral award dated 06.03.2023 (for short 'the Award').
FACTS
2. The brief facts are that the petitioner a company incorporated under the Companies Act, 1956 (for short 'the Companies Act'), is engaged in providing general insurance. The respondent a company registered under the Companies Act is engaged in the business of hospitality and manages hotels. The respondent got its hotel in Delhi insured by taking two insurance policies, a Standard Fire and Special Perils Policy (Material Damages) (for short 'the MD Policy') bearing no. 11181790 for an insured sum of Rs.186,44,11,765/- and a Fire Loss of Profit Policy (for short 'the LOP Policy') bearing no. 11181787 having a liability limit of Rs.100,00,00,000/-. The policies were valid from 01.04.2007 to 31.03.2008.
2.1 On 26.01.2008, a fire broke out in the insured property. The respondent submitted a claim of approximately Rs.68.64 crores under the MD Policy and Rs.100 crores under the LOP Policy. During the pendency of claim, Rs. 20 crores and Rs. 30 crores were paid under the MD
Inordinate delay in the pronouncement of an arbitral award, without sufficient justification, renders the award patently illegal and subject to annulment under Section 34 of the Arbitration and Conci....
Substantial delay in pronouncing an arbitral award undermines justice and can be grounds for setting aside the award under public policy considerations.
Delay in passing an arbitral award must be justified; unexplained delays can invalidate the award under public policy.
An arbitral award can be set aside due to inordinate and unexplained delay in its issuance, negatively impacting the rights of the aggrieved party.
An arbitral award may be set aside if made after expiry of the arbitrator's mandate or due to undue delay impacting its validity, reflecting violations of natural justice.
The main legal point established in the judgment is the significance of adhering to the prescribed limitation period under the Arbitration Act and the requirement for parties to exercise their rights....
Excessive and unexplained delay in arbitral proceedings vitiates the award, impacting fairness and leading to its annulment under public policy and patent illegality.
A tribunal must follow natural justice principles, allowing parties to present evidence; failure to do so renders an award susceptible to being set aside.
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