THE ORIENTAL INSURANCE COMPANY LTD. vs JINDAL INDIA LIMITED

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 24.03.2026 Judgment pronounced on: 02.04.2026 + O.M.P. (COMM) 182/2023, I.A. 9296/2023, I.A. 7305/2024 & I.A. 7697/2026 THE ORIENTAL INSURANCE COMPANY LTD. .....Petitioner Through: Mr. Abhishek K Gola, Advocate. versus JINDAL INDIA LIMITED .....Respondent Through: Mr. Ishaan Chhaya, Advocate. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN JUDGMENT 1. The present petition is filed under Section 34 of the Arbitration & Conciliation Act, 1996 (for short „the Act‟) for setting aside of the arbitral award dated 10.02.2023. 2. The brief facts are that the respondent/claimant is engaged in the manufacturing of Galvanised Steel Sheets, Corrugated Sheets & Coils and operates an Aluminium Foil division at NH-6 Mouza Jangalpur Hawra, West Bengal comprising of an old mill and a new mill. The respondent took an Industrial All Risk Policy from the petitioner valid from 13.01.2017 to 12.01.2018. The policy covered risk of fire, machinery breakdown and indemnity for business loss for a period of six months on account of business interruption i.e. Fire Signature Not Verified Signed By:CHANCHAL O.M.P. (COMM) 182/2023 Page 1 of 11 Signing Date:02.04.2026 16:50:49 loss of Profit (FLOP). 2.1 On the night of 27.09.2017 a fire broke out in the new unit of aluminium foil division. The petitioner appointed a surveyor (hereinafter referred to as „first surveyor‟). The survey report dated 25.12.2018 assessed the loss to the tune of Rs.13,31,13,073/- against the claim of Rs.19,31,69,106/-. The petitioner raised certain queries with regard to the method of calculation of Business Interruption Loss (for short „BIL‟). The first surveyor gave two additional reports dated 12.10.2019 and 18.11.2019 enhancing the business loss to Rs.17,02,77,3