Mr. Justice Sabyasachi Mukherjee

Whether repudiation of Insurance claim in its entirety after a notice is issued under Section 21 of the Arbitration Act can preclude the matter from being referred to Arbitration – TRS Lift and Shift Services Pvt. Ltd. Vs. Reliance General Insurance Company Ltd. – Calcutta High Court

Hon’ble Calcutta High Court held that:

(i) Once the arbitral proceeding commences, it does not lie in the mouth of the respondent to say that the commencement of the proceedings was itself bad, since at the juncture when it commenced there was no repudiation of the entire claim but only a dispute as to the quantum payable, which squarely comes within the purview of the arbitration clause.
(ii) Repudiation of the liability to pay in its entirety post-commencement of arbitration does not vitiate the reference itself and can at best furnish food for thought for the arbitral tribunal if the issue is raised before it. The issues as to whether there was an admission of liability on the part of the insurer and, if so, whether subsequent repudiation post-invocation of the arbitration clause can efface the same are to be dealt with on facts and law by the arbitrator upon assessment of evidence adduced by the parties.

Whether repudiation of Insurance claim in its entirety after a notice is issued under Section 21 of the Arbitration Act can preclude the matter from being referred to Arbitration – TRS Lift and Shift Services Pvt. Ltd. Vs. Reliance General Insurance Company Ltd. – Calcutta High Court Read Post »

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