ARB.P. 163/2022 & ARB.P. 164/2022 Page 1 of 38

IN THE HIGH COURT OF DELHI AT NEW DELHI

Judgment delivered on: February 22, 2023

+

ARB.P. 163/2022

ANTIQUE ART EXPORT PVT LTD.

..... Petitioner

Through:

Mr. Manish Kaushik and

Mr. Ajit Singh, Advs.

versus

UNITED INDIA INSURANCE COMPANY

LIMITED

.... Respondent

Through:

Mr. Amit Kumar Singh, Ms. K.

Enatoli Sema, Ms. Chubalemla

Chang and Mr. TavikatoAchumi,

Advs.

AND

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ARB.P. 164/2022

ANTIQUE ART EXPORT PVT LTD

..... Petitioner

Through:

Mr. Manish Kaushik and

Mr. Ajit Singh, Advs.

versus

UNITED INDIA INSURANCECOMPANY LIMITED

..... Respondent

Through:

Mr. Amit Kumar Singh, Ms. K.

Enatoli Sema, Ms. Chubalemla

Chang and Mr. Tavikato Achumi,

Advs.

CORAM:

HON'BLE MR. JUSTICE V. KAMESWAR RAO

J U D G M E N T

V. KAMESWAR RAO, J

1.

These petitions have been filed under Section 11 (6) of the

Arbitration and Conciliation Act, 1996, ( ‘Act of 1996’, for short), for

appointment of an Arbitrator to adjudicate the disputes between the parties

ARB.P. 163/2022 & ARB.P. 164/2022 Page 2 of 38

herein with the following prayers:

“ARB. P. 163/2022

ARB. P. 164/2022

may deem fit in the facts and circumstances of this case;”

2.

The petitioner is a Company namely Antique Art Export Private

ARB.P. 163/2022 & ARB.P. 164/2022 Page 3 of 38

Limited, engaged in the business of manufacturing, selling and exporting

carpets, rugs etc. The petitioner has been availing insurance policies from

respondent, United India Insurance Company Limited (herein “respondent

Company”). It is the case of the petitioner that it was approached by the

respondent company through its Administrative Officer, Mr. Pramod

Arora for renewal of expiring policies on terms and conditions to cover its

Factory situated at 78, Kilo Mile Stone, Karhans Village, Main Gt Road,

Samlakha, Panipat. The insurance policies since inception in 1991 are

being renewed and the applicable premium were being paid regularly.

3.

The petitioner availed/renewed Standard Fire and - Special Peril

Policies bearing Policy No.(s)- 040700/11/13/11/00000194, 040700/l

l/13/11/00000195 and 040700/11/13/1100000391, under which insurance

cover was provided against fire, lightning, natural disasters respectively.

The total amount ₹ 18.02 crore were under the policies of insurance cover.

These insurance policies were availed on June 29, 2013 and October 09,

2013, respectively.

4.

On September 25, 2013, the first fire (First Fire Incident) took place

in the Factory of the petitioner, situated at 78, Kilo Mile Stone, Karhans

Village, Main GT Road, Samalakha, Panipat, due to short circuit. As per

the petitioner, it had suffered huge financial losses, crippling its business

and bringing the entire business operations to a standstill. After the first

fire incident, representatives of the Surveyor visited the factory of the

petitioner and inspected the factory. Thereafter, on October 25, 2013,

second fire took place in the factory of the petitioner. The incident of fire

and the loss incurred thereof by the petitioner were reported to the

respondent company, who appointed M/s Protocol Surveyors & Loss

Assessors Pvt. Ltd. as the Surveyors and Assessors (‘Surveyor’, for short)

ARB.P. 163/2022 & ARB.P. 164/2022 Page 4 of 38

for both the claims of the petitioner.

5.

The respondent company sent an e-mail to the petitioner with

intimation that it had approved the claim for an amount of ₹ 2,81,44 413/-

, on account of fire incident dated October 25, 2013 towards full and final

settlement. With regard to the first fire incident the claim was settled for

₹2,20,36,840/-. It was the case of the respondent that the both the claims

were accepted by the petitioner without any demur or pro