Wijayarayana V. General Insurance

1946  Present : Howard C.J. and de Silva J.

WIJAYARAYANA, Appellant, and GENERAL INSURANCE
CO., LTD., Respondent.

198-D. C. Colombo, 15,283.

Arbitration-Insurance policy-Clause providing for arbitration in case of difference or dispute-Jurisdiction of Court in case of absence of dispute- Arbitration Ordinance (Cop. 83), s. 7.

One of the clauses of a policy of insurance provided that ?all differences arising out of this policy shall be referred to the decision of an arbitrator.?

When a claim was made by plaintiff, the insured, the defendant insurance company stated that it proposed to repudiate liability because the plaintiff had violated policy conditions. The particular act of violation was not stated. The defendant company was asked on what grounds it denied liability and the reply sent to the plaintiff was that when the latter made his claim it would be the occasion for informing him on what ground liability was repudiated.

Held, that, in the circumstances, when action was brought, there was no difference or dispute which could be referred to arbitration.

APPEAL from a decision of the District Judge of Colombo. The

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