M/S H P SPINNING MILLS PVT. LTD vs UNITED INDIA INSURANCE CO. LTD

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 17.09.2025 Judgment pronounced on: 13.10.2025 + FAO(OS) 426/2009, CM APPL. 13498/2009 and CM APPL. 2498/2020 M/S H P SPINNING MILLS PVT. LTD. .....Appellant Through: Mr. Sameer Nandwani, Ms. Niyati Jadaun, Ms. Heeba Ansari and Ms. Sanya Arora, Advocates. versus UNITED INDIA INSURANCE CO. LTD. .....Respondent Through: Mr. Prithvi Raj Sikka, Advocate. CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR JUDGMENT HARISH VAIDYANATHAN SHANKAR, J. 1. The present Appeal, filed under Section 37 of the Arbitration & Conciliation, 19961, read with Section 151 of the Code of Civil Procedure, 1908, assails the Judgment dated 13.08.20092 passed by the learned Single Judge of this Court in OMP No. 609/2007, titled M/s. United India Insurance Co. Ltd. v. Karan Chand Goel. By the said Judgment, the objections filed by the Respondent herein under 1 A&C Act 2 Impugned Judgement Signature Not Verified Digitally Signed By:HARVINDER KAUR BHATIA FAO(OS) 426/2009 Page 1 of 24 Signing Date:15.10.2025 14:06:37 Section 34 of the A&C Act were allowed, resulting in the setting aside of the Arbitral Award dated 01.08.2007 3 passed by the learned Arbitrator. 2. Under the said Arbitral Award, the learned Arbitrator had allowed the claims of the Appellant herein to the extent of Rs. 40,84,716.25/-, together with interest at the rate of 9% per annum on the awarded sum with effect from 24.10.2001 until the date of actual payment, in addition to the costs of arbitration. 3. The controversy arising for determination in the present Appeal is narrow and pertains to the interpretation of Clause 6(b)(ii) of the Insurance Policy 4 issued by the Respondent in favour of the Appellant. The relevant clause re