IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 20.01.2026

CORAM

THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH

Burhanpur Textiles Limited,

represented by its Director,

Mr.Ravi Kumar Poddar,

Having Factory at

251/2 BT House Thakur Devi Singh Marg,

Alamganj, Burhanpur,

Madhya Pradesh – 450 331. .... Petitioner

Vs.

M/s.United India Insurance Company Limited

registered Head Office at

24, Whites Road, Chennai – 600 014.

Also at C-22/13, Mahakal Vanigiya Kendra,

Above Hero Service Centre,

near Treasure Bazar, Nanakheda,

Ujjain, Madhya Pradesh – 456 010. .... Respondent

PRAYER

Arbitration Original Petition (Commercial Division) filed under

Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking to appoint a Sole Arbitrator to adjudicate the dispute between the petitioner and the respondent arising out of the Standard Fire and Special Perils

Policy dated 08.11.2022.

For Petitioner : Ms.Vandana

for M/s.Surana & Surana

*****

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [for brevity 'the Act'] for appointment of an Arbitrator to decide the dispute and differences between the petitioner and the respondents in terms of the Standard Fire and Special Perils Policy dated 08.11.2022.

2. The petitioner obtained a Standard Fire and Special Perils Policy dated 08.11.2022 from the respondent and in accordance with the terms of the said policy, the respondent is responsible for paying the petitioner for all losses suffered by it, during the insured period arising out of the risks covered by the said policy. During the insured period on 20.12.2022 at 02.45 a.m., massive fire broke out in the factory of the petitioner and due to the said fire accident, the petitioner suffered huge losses and its operation came to a standstill. The petitioner, through e-mail dated 20.12.2022, immediately informed the respondent about the accident. Though the loss suffered by the petitioner is to the tune of Rs.12,28,50,118.86, the respondent has released only payment of Rs.6,73,86,571/-.

3. The trigger notice dated 25.08.2025 was issued to respondent and in spite of receipt of the same, there was no response from respondent. It is under these circumstances, the present petition came to be filed before this Court.

4. When the matter came up for hearing on 11.12.2025, this Court passed the following order:

“This petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as 'the Act'] to appoint an arbitrator to resolve the dispute arising out of the Standard Fire and Special Perils Policy dated 08.11.2022.

2. The agreement provides for referring the dispute for Arbitration under clause 13 and the same is extracted hereunder:-

“13. If any dispute or difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to or if they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration, the same shall be referred to a panel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the parties to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996.

It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as hereinbefore provided, if the Company has disputed or not accepted liability under or in respect of this policy. It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the award by such arbitrator/arbitrators of the amount of the loss or damage shall be first obtained.”

3. The trigger notice under Section 21 of the Act was issued on 25.08.2025 and the same ha