The fees of the learned Arbitrator shall be according to Fourth Schedule of the Arbitration and Conciliation Act, 1996: High Court of Delhi
Justice (Retd.) V.K. Shali was appointed by the Honorable Delhi High Court as the sole arbitrator as held by Hon’ble Mr. Justice Suresh Kumar Kait in the case of Jindal India Limited vs. The Oriental Insurance Company Limited [ARB.P. 781/2021]. The facts of the present case are such that the petitioner claiming to be a producer of galvanized steel sheets, corrugated sheets, and coils, and exports its products to numerous countries across the globe and also supplies galvanized and black pipe segments to the oil and gas industry. Has taken an Insurance policy from the respondent Oriental Insurance Company Limited which is a state-owned non-life insurance company in India. On 27.09.21 an accidental fire broke out in the petitioners’ plant at jangalpur which caused significant damage to its aluminum foil rolling mill. In the present matter, the petitioner claimed to have suffered damages and have claimed to be covered under “Material Damage and Business Interruption” of the policy. The petitioner has made a claim of INR 19,31,69,106 whilst the surveyor namely Bhatawadekar Insurance Surveyor and Loss Assessors Private Limited appointed by the respondent assessed the damages to be at INR 13,31,13,073. After which the respondent issued INR 3,84,80,892 to the settlement of the 8I/LOP claim which is arising under the policy between the parties. The present petitioner asked for a copy of the report from the respondent, however, the petitioner alleges that the respondent’s reply did not contain the reasons for the assessment and after this, the clarification asked by the petitioner remained unanswered. In the present dispute, the Honorable Court concluded that the dispute is to be referred to an arbitrator under General Condition No.12, as contained in the insurance policy No. 311700/11/2017/711. In the present issue the petitioner has already nominated their arbitrator however the respondent has failed to respond within the stipulated time period of 30 days. The respondent has submitted to resolve the disputes inter se parties and in light of this the sole arbitrator is to be appointed by the Delhi High Court. Therefore, in the aforesaid issue, Justice (Retd.) V.K. Shali has been appointed to adjudicate the dispute between the present parties. The fees of the arbitrator are to be decided according to the Fourth Schedule of the Arbitration and Conciliation Act, 1996.
 IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 17.09.2021 ARB.P. 781 2021 JINDAL INDIA LIMITED Through: Mr. Ishaan Chhaya Advocate ......Petitioner THE ORIENTAL INSURANCE COMPANY LIMITED Through: Ms. Sakshi Gupta Advocate HON BLE MR. JUSTICE SURESH KUMAR KAIT JUDGMENT The present petition has been preferred on behalf of petitioner seeking appointment of sole Arbitrator under the provisions of Section 11(6) of the Arbitration and Conciliation Act 1996. Petitioner claims to be producer of galvanized steel sheets corrugated sheets and coils and exports its products to numerous countries across the globe and also supplies galvanized and black pipe segments to the oil and gas industry. According to petitioner respondent is a state owned non life insurance company in India. According to petitioner on 27.09.2021 an accidental fire broke out at ARB.P. 781 2021 petitioner s plant at Jangalpur which caused significant damage to its aluminum foil rolling mill. Soon thereafter the petitioner claims to have informed the respondent about the accident its ensuing loss and the insurance claim arising under the “Material Damage and Business Interruption” of the policy. The respondent appointed the Bhatawadekar Insurance Surveyor and Loss Assessors Private Limited for assessing the loss and the surveyor submitted Final Survey Report on 31.08.2018 wherein he had assessed the loss at INR 13 31 13 073 against a claim of of INR 19 31 69 106 made by the petitioner. It is asserted on behalf of petitioner that on 31.12.2019 respondent issued INR 3 84 80 892 towards settlement of the 8I LOP claim arising under the Policy which also contained a pre printed statement that petitioner was voluntarily accepting the amount. The petitioner was insisted upon by the respondent to sign the discharge voucher without any protest. Vide letter dated 01.01.2020 petitioner sought a copy of the Surveyor’s report from respondent which was replied vide letter dated 02.01.2020 by the respondent but according to petitioner the said communication did not incorporate the reasons for assessment and thereafter all the communications made on behalf of petitioner seeking ARB.P. 781 2021 clarification thereon have remained unanswered. Therefore a notice dated 13.03.2021 was issued by the petitioner to the respondent invoking Learned counsel for petitioner submits that in pursuance to General Condition No.12 insurance policy No. 311700 11 2017 711 dated 13.01.2017 by the petitioner to the respondent the Arbitrator has to be appointed to adjudicate the disputes between the During the course of hearing learned counsel for petitioner submits that vide aforesaid Notice dated 13.03.2021 petitioner has already nominated its Arbitrator but respondent has failed to respond thereto within stipulated time of 30 days therefore the preset petition be allowed. During pendency of this petition learned counsel for respondent had sought time to obtain instructions. Today it is submitted by learned counsel that to resolve the disputes inter se parties sole Arbitrator be appointed by In view of the aforesaid Justice V.K. Shali is appointed sole Arbitrator to adjudicate the disputes between this Court. the parties. ARB.P. 781 2021 10. The fees of the learned Arbitrator shall be according to Fourth Schedule of the Arbitration and Conciliation Act 1996. 11. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act 1996 before commencing the arbitration. 12. A copy of this order be sent to the learned Arbitrator for information SEPTEMBER 17 2021 SURESH KUMAR KAIT) JUDGE ARB.P. 781 2021 