Arbitration Case No. 4 of 2006 [1] IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Arbitration Case No. 4 of 2006 Date of Decision: 11.01.2010 Tilak Handlook Industries ..Petitioner Versus Oriental Insurance Company & another ..Respondents CORAM: HON'BLE MR. JUSTICE MUKUL MUDGAL, CHIEF JUSTICE 1.Whether Reporters of local papers may be allowed to see the judgment ? 2. Whether to be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? Present :- Mr. Rohit Khanna, Advocate, for the petitioner. Mr. Ashwani Talwar, Advocate, for the respondents. *** MUKUL MUDGAL, C.J. (Oral) This petition has been filed by the petitioner under Section 11 of the Arbitration & Conciliation Act, 1996 (for short ' the Act), for appointment of sole Arbitrator to adjudicate the disputes between the parties. Clause 11 of the agreement contains the Arbitration Clause which reads as under:- “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 Arbitration Case No. 4 of 2006 [2] 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 penel of three arbitrators, comprising 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 & Conciliation Act, 1996. It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as herein before 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.” Pursuant to the above clause, the petitioner sought arbitration but despite that no Arbitrator was appointed thereby leading to filing of the present petition. Learned counsel for the respondents urged that the present petition is not maintainable because full and final claim of the petitioner stood settled. On the other hand, learned counsel for the petitioner while rebutting the aforesaid argument contended that the stand taken by the respondents is not tenable in view of the judgment of the Hon'ble Supreme Court in National Insurance Co. Ltd. V. Boghara Polyfab Pvt. Ltd. 2008(3) Arb. L.R. 633 (SC). I have gone through the judgment of the Hon'ble Supreme Court in Boghara Polyfab's case (supra) and found that even after Arbitration Case No. 4 of 2006 [3] settlement of full and final claim, if a dispute is raised in the presence of arbitration clause, the matter is referable to the Arbitrator for adjudication. In this case also, though the claim as per the stand of the respondents has been fully settled, but the dispute having been raised by the petitioner in the presence of the arbitration clause in the policy, I am of the view that the matter deserves to be referred to the Arbitrator for adjudication of the dispute. Accordingly, I allow this petition and appoint Shri M.S.Lobana, Retired District & Sessions Judge, Chandigarh as a sole Arbitrator to adjudicate upon the disputes between the parties. In the meanwhile, the parties will exchange the statements of claim and response thereof. The statement of claim be supplied to counsel for the respondents within four weeks and response to the statement of claim shall be supplied to the counsel for the petitioner within four weeks thereafter. The parties shall appear before the Arbitrator on 02.04.2010 or on an agreed date convenient to the parties but not later than a fortnight from 02.4.2010 after exchange of pleadings as directed aforesaid. The Arbitrator shall make endaveour to dispose of the reference not later than six months from the date of appearance of the parties . The fee of the Arbitrator is fixed as Rs. 1.50 lacs ( Rs. One lac fifty thousand only) plus actual expenses. The fee to be initially shared by the parties subject to the final order passed by the Arbitrator. (MUKUL MUDGAL) CHIEF JUSTICE 11.01.2010 'ravinder'