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* IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 16^th February, 2026 Pronounced on: 10th April, 2026 + O.M.P. (COMM) 8/2024 PANCHANAN INTERNATIONAL PRIVATE LIMITED .....Petitioner Through: Mr. Manish K. Jha, Sr. Adv. with Mr.

Rajat Joneja and Mr. Himanshu Mishra, Advs.

M: 7766912655 Email:

advhimanshuoffice@gmail.com versus THE ORIENTAL INSURANCE COMPANY LIMITED .....Respondent Through: Mr. Abhishek Gola, Adv.

M: 9958789900 CORAM:

HON'BLE MS. JUSTICE MINI PUSHKARNA

JUDGMENT

MINI PUSHKARNA, J.

1. The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), being aggrieved by the Arbitral Award dated 28^th August, 2023, passed by the learned Sole Arbitrator in arbitration proceedings titled as, “Panchanan International Private Limited Versus The Oriental Insurance Company Limited”.

2. By way of the impugned Arbitral Award, the learned Arbitrator has partly allowed the claim of petitioner and directed the respondent to pay Rs.

20,65,27,032/- along with interest @10% per annum from the date of filing the statement of claim before the Arbitrator, and costs.

3. In the present proceedings before this Court, the petitioner-claimant has challenged the impugned Arbitral Award on the following four findings of the Arbitrator:

(a)Pre-reference Interest: The Arbitrator has not provided the interest on the awarded amount for the pre-reference period, i.e., the period before filing of the claims/statement of claim before the Arbitrator.

(b)Double Deduction: The Arbitrator has approved carrying out deductions twice under the Insurance Policy, first, in the form of „excess‟, and second, under „error/ omission/ dead stock, etc.‟, whereby, petitioner‟s claim has been reduced by Rs. 1,37,71,763/-.

(c)Undervaluation of Stock: Stock of the petitioner has been erroneously undervalued by the Arbitrator by computing the same at 9% of its Maximum Retail Price (“MRP”), thus, undervaluing certain old stock worth Rs. 1,76,92,348/-.

(d)Taxation Component: The Arbitrator has failed to adjudicate on the petitioner‟s Claim No. 5 for taxes and duties payable on the awarded amount.

4. Relevant Facts in Brief:

4.1 The petitioner company was incorporated in the year 1998 and is engaged in the business of wholesale trade and distribution of readymade garments and undergarments in Delhi and Uttar Pradesh. The respondent – The Oriental Insurance Company Limited (“OICL”) – is an insurance company providing various types of general insurance covers.

4.2 Petitioner purchased a Standard Fire and Special Perils Floater Insurance Policy (“Insurance Policy”) from the respondent on 10^th May, 2016 for a sum insured of Rs. 30 Crores, upon payment of Rs. 2,50,326/- as premium. The Insurance Policy was valid for a period of one year, till 09^th May, 2017.

4.3 On 25^th April, 2017, due to some electrical issue, a fire broke out at petitioner‟s godown, at premises bearing No. 53/73, Nangli Poona, opposite DIRD College, GT Kamal Road, Delhi-110036, which was covered under the Insurance Policy. The said fire was brought under control on the morning of 26^th April, 2017, whereafter, the petitioner sent an intimation to the respondent, as per the terms of the Insurance Policy.

4.4 The respondent appointed one M/s Aditi Insurance Surveyor and Loss Assessors Pvt. Ltd. (“Surveyor”) for carrying out the survey to ascertain the nature of fire and quantum of damage/loss. The petitioner submitted its claim of Rs. 37,27,22,010/-, along with documentary evidence, with the respondent and Surveyor on 10^th July, 2017.

4.5 After months of back and forth, involving exchange of information, documents and various meetings, the Surveyor assessed the loss at Rs.

20,65,27,032/-, vide its Report dated 09^th July, 2018.

4.6 Thereafter, post repetitive reminders and requests, on 12^th March, 2020, almost 20 months after assessment of the Surveyor, an email was received from the respondent, unilaterally reducing and approving a sum of Rs. 65,86,125/- towards full and