Accepting one observation in surveyor’s report cannot mean accepting the report in its entirety [CS Shubham Budhiraja]

A took the Fire Insurance policy and filed a claim before an arbitrator against the Insurance company. A filed claims of R.s. 100 towards plant and machinery whereas surveyor assessed R.s. 80 but the arbitrator allowed and granted R.s. 90. The Insurance Company challenged the award on the basis that there is a case of under insurance as per surveyor report and therefore award of R.s. 90 not justified. The Hon’ble High Court refused the plea and confirmed the award by holding that merely because the said report has been relied upon for the purpose for assessing the loss caused to plant and machinery; it does not mean that every aspect of the said report had to be necessarily adopted. In so far as arbitrator directing Insurance company to pay litigation expenses, Hon’ble High Court set aside the same by holding that It is settled law that relief not

prayed for cannot be granted. The Arbitrator failed to take note of the fact that both the parties had agreed to equally share the arbitral fee.

NIC v. Digital World, O.M.P. (COMM) 547/2020, Delhi High Court dated 08.04.2022

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