{"id":21724,"date":"2006-08-30T00:00:00","date_gmt":"2006-08-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/united-india-insurance-co-ltd-vs-j-a-infra-structure-pvt-ltd-on-30-august-2006"},"modified":"2018-05-14T09:29:58","modified_gmt":"2018-05-14T03:59:58","slug":"united-india-insurance-co-ltd-vs-j-a-infra-structure-pvt-ltd-on-30-august-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/united-india-insurance-co-ltd-vs-j-a-infra-structure-pvt-ltd-on-30-august-2006","title":{"rendered":"United India Insurance Co. Ltd vs J.A.Infra Structure Pvt.Ltd on 30 August, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">United India Insurance Co. Ltd vs J.A.Infra Structure Pvt.Ltd on 30 August, 2006<\/div>\n<div class=\"doc_author\">Author: . A Lakshmanan<\/div>\n<div class=\"doc_bench\">Bench: Dr. Ar. Lakshmanan, Tarun Chatterjee<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  3870 of 2006\n\nPETITIONER:\nUNITED INDIA INSURANCE CO. LTD.\n\nRESPONDENT:\nJ.A.INFRA STRUCTURE PVT.LTD.\n\nDATE OF JUDGMENT: 30\/08\/2006\n\nBENCH:\nDr. AR. LAKSHMANAN &amp; TARUN CHATTERJEE\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\n(Arising out of SLP(C) No.6470 of 2006) <\/p>\n<p>Dr. AR. LAKSHMANAN, J.\n<\/p>\n<p>\tLeave granted.\n<\/p>\n<p>\tHeard learned counsel appearing on behalf of both sides.<br \/>\n\tThis appeal is directed against the final judgment and order<br \/>\ndt.21.12.2005 passed by the High Court of Judicature at Bombay, Nagpur<br \/>\nBench in Writ Petition No.5454 of 2005.  The respondent is the insured.<br \/>\nThe respondent invoked arbitration as per Condition No.7 of the Policy.<br \/>\nThe respondent appointed one Shri V.P.Shah as Arbitrator.  The<br \/>\nappellant-Insurance Company appointed Shri A.Sankaran as Arbitrator.<br \/>\nBoth the Arbitrators appointed Shri B.R.Mehta as Presiding Arbitrator.<br \/>\nOn 10.10.2003, the Majority Award was passed by the Presiding<br \/>\nArbitrator, Shri B.R.Mehta and Co-Arbitrator Shri V.P.Shah awarding<br \/>\nRs.2,12,49,336.00 (Rupees two crore twelve lakh forty nine thousand<br \/>\nthree hundred thirty six only) with future interest @ 18%.  The Minority<br \/>\nAward was passed by Co-Arbitrator Shri A.Sankaran who awarded a<br \/>\nsum of Rs.1,23,08,104\/- and interest of Rs.43,57,066\/- upto 10.10.2003<br \/>\nand cost of arbitration of Rs.4 lacs and further interest on the aggregate<br \/>\nof all these amounts @ 15% from the date of Award till the date of<br \/>\npayment of decree whichever is earlier.\n<\/p>\n<p>\tAggrieved by both the Awards, the appellant filed Arbitration<br \/>\nPetition under Section 34 of the Arbitration and Conciliation Act, 1996<br \/>\n(for short &#8216;the Act&#8217;) in the High Court of Judicature at Bombay.  The<br \/>\npetition was listed before a learned Single Judge of the High Court who<br \/>\nafter hearing the parties dismissed the petition for want of jurisdiction.<br \/>\nThe appellant-Insurance Company thereafter filed a fresh petition under<br \/>\nSection 34 of the    Act before the District Court, Nagpur along with<br \/>\napplication under Section 14 of the Limitation Act on 17.01.2005.  The<br \/>\nDistrict Court, Nagpur dismissed the application filed by the appellant-<br \/>\nInsurance Company under  Section 14 of the Limitation Act and<br \/>\nconsequently, the application filed under Section 34 of the Act also<br \/>\nstood dismissed.  Aggrieved against the order passed by the District<br \/>\nCourt, the appellant filed again a Writ Petition before the High Court of<br \/>\nBombay at Nagpur Bench which was also dismissed on 21.12.2005.<br \/>\nAggrieved by the said Judgment dt.21.12.2005, the appellant preferred<br \/>\nthe above appeal.\n<\/p>\n<p>\tThe High Court by the impugned judgment dismissed the Writ<br \/>\nPetition No.5454 of 2005 following the earlier judgment of the Bombay<br \/>\nHigh Court in H.M.P.Engineers Ltd. and Ors. vs. Ralies India Ltd. and<br \/>\nOrs., reported in 2003(4) MH.L.J.931.  Learned counsel for the appellant<br \/>\nsubmitted that in view of the recent judgment of this Court in <a href=\"\/doc\/1330198\/\">State of<br \/>\nGoa vs. M\/s.Western Builders,<\/a> reported in JT 2006 (6) SC 125, the view<br \/>\ntaken by the Bombay High Court in  H.M.P.Engineers Ltd. and Ors. vs.<br \/>\nRalies India Ltd. and Ors. (supra) and followed by the High Court in the<br \/>\nimpugned judgment is not correct.\n<\/p>\n<p>\tThis Court in the Judgment in  <a href=\"\/doc\/1330198\/\">State of Goa vs. M\/s.Western<br \/>\nBuilders<\/a> (supra) was considering the question as to what extent Section<br \/>\n14 of the Limitation Act, 1963 which deals with exclusion of time spent in<br \/>\nprosecuting the remedy before wrong forum is applicable to the<br \/>\nArbitration and Conciliation Act, 1996 or not.  Section 14 of the<br \/>\nLimitation Act reads thus :-\n<\/p>\n<p>&#8220;14.Exclusion of time of proceeding bona fide in court without<br \/>\njurisdiction &#8211; (1) In computing the period of limitation for any<br \/>\nsuit the time during which the plaintiff has been prosecuting<br \/>\nwith due diligences another civil proceeding, whether in a<br \/>\ncourt of first instance or of appeal or revision, against the<br \/>\ndefendant shall be excluded, where the proceeding relates to<br \/>\nthe same matter in issue and is prosecuted in good faith in a<br \/>\ncourt which, from defect of jurisdiction or other cause of a like<br \/>\nnature, is unable to entertain it.\n<\/p>\n<p>2\tIn computing the period of limitation for any application, the<br \/>\ntime during which the applicant has been prosecuting with due<br \/>\ndiligence another civil proceeding, whether in a court of first<br \/>\ninstance or of appeal or revision, against the same party for<br \/>\nthe same relief shall be excluded, where such proceeding is<br \/>\nprosecuted in good faith in a court which, from defect of<br \/>\njurisdiction or other cause of a like nature, is unable to<br \/>\nentertain it.\n<\/p>\n<p>3\t Notwithstanding anything contained in rule 2 of Order XXIII of<br \/>\nthe Code of Civil Procedure, 1908 (5 of 1908), the provisions of<br \/>\nsub-section (1) shall apply in relation to a fresh suit instituted<br \/>\non permission granted on the ground that the first suit must<br \/>\nfail by reasons of a defect in the jurisdiction of the court of<br \/>\nother cause of a like nature.&#8221;\n<\/p>\n<p>\tThis Court also in para 13 of the said Judgment has observed that<br \/>\nSection 14 of the Limitation Act has been excluded by this special<br \/>\nenactment i.e. Arbitration and Conciliation Act, 1996 and that Section 43<br \/>\nof the Arbitration and Conciliation Act, 1996 clearly says that the<br \/>\nLimitation Act, 1963 shall apply to arbitration as it applies to the<br \/>\nproceedings in court.  This Court has also followed few other Judgments<br \/>\nof this Court in support of the view taken by them.  In the concluding<br \/>\nportion this Court has observed that in the present context, there is no<br \/>\ntwo opinion in the matter that the  Arbitration and Conciliation Act, 1996<br \/>\ndoes not expressly excluded the applicability of Section 14 of the<br \/>\nLimitation Act and that  the prohibitory provision has to be construed<br \/>\nstrictly.\n<\/p>\n<p>\tIn the result, this Court was of the opinion that the view taken by<br \/>\nthe court below excluding the applicability of Section 14 in the said<br \/>\nproceeding was not correct.  This Court held that Section 14 of the<br \/>\nLimitation Act, 1963 was applicable in the  Arbitration and Conciliation<br \/>\nAct, 1996 and accordingly this Court set aside the judgments and order<br \/>\nand remanded the matters back to the District Court for deciding the<br \/>\napplication under Section 14 of the Limitation Act on merit.  In view of the<br \/>\nJudgment in   <a href=\"\/doc\/1330198\/\">State of Goa vs. M\/s.Western Builders<\/a> (supra), the counsel<br \/>\nfor the respondent has not seriously opposed to the applicability of<br \/>\nSection 14 of the Limitation Act which deals with exclusion of time spent<br \/>\nin prosecuting the remedy before the wrong forum bona fide.  Therefore,<br \/>\nwe set aside the order passed by the High Court and remit the matter<br \/>\nback to the District Court, Nagpur to decide the objections raised by the<br \/>\nappellant-Insurance Company under Section 34(3) of the  Arbitration and<br \/>\nConciliation Act, 1996 and decide the same on merit after affording<br \/>\nopportunity to the respondent herein.\n<\/p>\n<p>\tSince the matter is pending for very long time before one forum or<br \/>\nthe other, we direct the District Court, Nagpur to dispose of the matter<br \/>\nwithin six months from today.\n<\/p>\n<p>\tWe make it clear that we have not decided the objections and other<br \/>\nissues raised on merits.\n<\/p>\n<p>\tThe Civil Appeal stands disposed of accordingly with the above<br \/>\nobservation.  However, pending disposal of the matter by the District<br \/>\nCourt, we direct the appellant-Insurance Company to deposit the amount<br \/>\nawarded by the Arbitrator Shri A.Sankaran to the credit of Arbitration<br \/>\nPetition No.164\/2005 on the file of the District Court, Nagpur.  The<br \/>\nAppellant-Insurance Company shall now deposit Rs.1,70,65,170\/-<br \/>\n(Rupees one crore seventy lakhs sixty five thousands, one hundred<br \/>\nseventy only) to the credit of Arbitration Petition No.164\/2005 within one<br \/>\nmonth from today.  On such deposit, the District Court shall invest the<br \/>\nsame in a nationalised bank in a short term deposit.<br \/>\n\tWe also reserve liberty to the respondent to move an application<br \/>\nfor withdrawal of the said amount before the said court and if such an<br \/>\napplication is filed, the District Court is directed to dispose of the same<br \/>\non merits and in accordance with law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India United India Insurance Co. Ltd vs J.A.Infra Structure Pvt.Ltd on 30 August, 2006 Author: . A Lakshmanan Bench: Dr. Ar. Lakshmanan, Tarun Chatterjee CASE NO.: Appeal (civil) 3870 of 2006 PETITIONER: UNITED INDIA INSURANCE CO. LTD. RESPONDENT: J.A.INFRA STRUCTURE PVT.LTD. DATE OF JUDGMENT: 30\/08\/2006 BENCH: Dr. AR. LAKSHMANAN &amp; TARUN CHATTERJEE [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-21724","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>United India Insurance Co. 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