TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the arbitral tribunal could decide the objection that the claim stood concluded by full and final settlement and whether the discharge voucher was executed voluntarily; (ii) whether the policy and contemporaneous correspondence permitted the sub-limits at different locations to vary on the basis of monthly declarations and whether a fresh survey was required; (iii) whether the rate of interest awarded by the tribunal required interference.
Issue (i): Whether the arbitral tribunal could decide the objection that the claim stood concluded by full and final settlement and whether the discharge voucher was executed voluntarily.
Analysis: The arbitration clause was construed broadly enough to cover the question whether any amount remained payable under the policy, which necessarily included the issue whether the discharge voucher amounted to accord and satisfaction. In interpreting the contract, contemporaneous correspondence and the conduct of the parties were relevant. The tribunal found, on evidence, that the voucher was not signed voluntarily and that payment of the admitted amount was made conditional upon signature of the discharge voucher. That finding was supported by the record and was not shown to be perverse.
Conclusion: The objection based on full and final settlement failed, and the tribunal had jurisdiction to decide the issue.
Issue (ii): Whether the policy and contemporaneous correspondence permitted the sub-limits at different locations to vary on the basis of monthly declarations and whether a fresh survey was required.
Analysis: The policy was read with the cover notes, annexure and the correspondence exchanged between the parties at inception. On that material, the tribunal held that the contract was governed by the parties' agreed understanding rather than by the policy nomenclature alone, and that the monthly declarations evidenced a working arrangement under which location-wise values could change within the overall cover. The tribunal also held that the surveyor's report was not sacrosanct and that, in the absence of any convincing challenge to the declared stock values, no purpose would be served by a fresh reference. The statutory requirement of a survey report was treated as satisfied, while its contents were treated as non-conclusive.
Conclusion: The challenge based on under-insurance and the request for a fresh survey were rejected.
Issue (iii): Whether the rate of interest awarded by the tribunal required interference.
Analysis: The tribunal had awarded interest at 15% per annum pendente lite and 12% per annum thereafter. In light of the prevailing judicial approach to interest in arbitral matters and the changed economic conditions, the rate was considered excessive and liable to reduction.
Conclusion: The interest awarded was modified and reduced to 9% per annum.
Final Conclusion: The objections to the award substantially failed, the award was sustained on merits, and only the interest component was reduced.
Ratio Decidendi: A broadly worded arbitration clause covering the quantum payable under a policy can encompass the question of full and final settlement, contractual interpretation may be informed by contemporaneous correspondence and conduct, and a surveyor's report under the insurance law is relevant but not conclusive.
TaxTMI 
TaxTMI 
