ORDER :

I.A. No. 4129 of 2020

1. The appellant has filed this interlocutory application under section 5 of the LIMITATION ACT seeking condonation of delay of 57 days in filing the present Letters Patent Appeal.

2. In view of the statements made in this interlocutory application, the delay of 57 days in filing this appeal is condoned.

3. I.A. No. 4129 of 2020 is, accordingly, allowed.

Commercial Appeal No. 17 of 2020

4. Briefly stated, the New India Assurance Company Limited (in short, Insurance Company) issued a Standard Fire and Special Perils Policy dated 12th November 2014 through its Chaibasa branch in respect of the rice mill belonging to M/s Sri Balaji Agro Farm Industries Pvt. Ltd. (in short, claimant) at village Ranjitpur in the district of Seraikella within the State of Jharkhand. The aforesaid insurance policy covered the rice mill for the period between 12th November 2014 to mid night of 11th November 2015. A claim for Rs. 49,15,000/- was lodged by the claimant with the Insurance Company for the loss caused due to storm on 27th May 2015 and the aforesaid claim was referred to Purkayastha Associates under section 64UM(4) of the INSURANCE ACT , 1938 for survey and loss assessment. Against the loss assessment by the Surveyor to the tune of Rs. 3,21,830.94, the claimant lodged a representation which was referred to the Surveyor and the same has been rejected on the ground of the claim being beyond the terms and conditions of the policy. According to the Insurance Company the claimant was offered the assessed amount which was refused by it. On refusal of its representation, the claimant issued a legal notice on 10th August 2016 for settlement of its claims. Latter on, the claimant company sent a notice dated 16th March 2017 to the Insurance Company for reference of the dispute to arbitration. Thereafter an Arbitrator was appointed vide order dated 29th June 2018 by the Jharkhand High Court, in the proceeding of the Arbitration Application No. 21 of 2017 filed under section 11(6) of the Arbitration and Conciliation Act, 1996.

5. The claimant raised claims under 3 heads viz. (A) cost incurred in refurbishing the rice mill (B) estimated cost of pending work after damage by storm and (C) overhead office expenses and interest. The total claim under the aforesaid heads was to the tune of Rs. 93,75,464.98. Before the Sole Arbitrator, a plea was raised by the Insurance Company that in view of section 28 to the Insurance Regulatory and Development Authority Act, the provisions of Arbitration and Conciliation Act, 1996 are made inapplicable and the Surveyor's report cannot be challenged in the arbitration proceeding and any dispute regarding the same has to be raised before IRDA under section 64 UM of the INSURANCE ACT , 1938.

6. The Arbitrator has referred to 17 documents filed by the claimant and Fire Claim Form under Annexure-A and Final Form report vide Annexure-B tendered by the Insurance Company. The learned Arbitrator has also referred to the judgments in “ BCCI v. Kochi Cricket Pvt. Ltd. AIR 2018 SC 1549 , “The NIA Company Ltd. v. M/s Protection Manufacturer Pvt. Ltd.” (2010) 7 SCC 386, “Sri Venkateshwara Syndicate v. OIC Ltd.” (2009) 8 SCC 507, “ M/s Surendra Pd. Singh v. UOI & Ors.” 2012 (3) PLJR 506 and “ New India Assurance Company Ltd. v. Pradeep Kumar ” (2009) 7 SCC 787 which were relied upon on behalf of the claimant.

7. The learned Arbitrator having noticed that the bills enclosed by the claimant were not disputed or challenged as fake or fictitious has allowed the claim on account of cost