1. N. R. Srinivasa Iyer hereinafter called 'the ptaintiff'-sued the respondent Company in the Court of the Subordinate Judge, Trichur, for a decree for Rs. 7,000/- being the value of his motor-car which was destroyed by fire on July 10, 1953, when it was in the possession of the agent of the respondent company. The Trial Court decreed the plaintiff's suit. In appeal to the High Court of Kerala the decree was reversed, and the plaintiff's suit was dismissed. With special leave the plaintiff has appealed to this Court.

2. The respondent Company which carries on the business of fire and general insurance insured the plaintiff's motor-car No. T. C. Q-1 against loss or damage under "a comprehensive policy" for the period March 1, 1952 to February 28, 1953. The relevant conditions of the policy were conditions Nos. 3, 7 & 8:

3 "The Company may at its own option repair, reinstate or replace the motor-car of part thereof and/or its accessories or may pay in cash the amount of the loss or damage

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7 "All differences arising out of this policy shall be referred to the decision of an arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a sin