UNITED INDIA INSURANCE COMPANY LIMITED vs UPL LIMITED

Judgment text excerpt

Neeta Sawant CARBP-10809-2024 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION (L) NO. 10809 OF 2024 WITH INTERIM APPLICATION (L) NO. 11225 OF 2024 WITH INTERIM APPLICATION (L) NO. 11117 OF 2024 United India Insurance Company Limited ....PETITIONER/APPLICANT VERSUS UPL Limited …. RESPONDENT Mr. Sharan Jagtiani, Senior Advocate with Ms. Surbhi Agarwal & Ms. Netra Haldankar i/b Dhruve Liladhar & Co., for the Petitioner/ Applicant. Mr. Shiraz Rustomjee, Senior Advocate with Ms. Shreya Parikh, Mr. Archit Jayakar, Ms. Pooja Yadav, Mr. Mihir Kakade & Mr. Kshitij Abbhi i/b Jayakar & Partners, for the Respondent. CORAM : SANDEEP V. MARNE, J. Reserved On : 1 April, 2026. Pronounced On: 22 April 2026. Judgment : 1) When a Gas Turbine Engine is damaged due to an accident and the insured is required to get the Engine overhauled and raises a claim towards the overhauling expenses and the insurer sanctions only the expenses for accidental repairs, whether the dispute relating to non- _____________________________________________________________________________ PAGE NO. 1 OF 77 22 April 2026 Neeta Sawant CARBP-10809-2024 payment of balance claim is a dispute of ‘quantum’ or dispute of ‘liability’ is the issue that this Court is tasked upon to decide in the present Petition. To paraphrase, whether it is permissible for the insurer to segregate the claim in respect of the damage to the Engine into ‘repairs claim’ and ‘overhaul claim’ and take a stand that mere payment for the former claim does not amount to acceptance of liability in respect of the latter claim, making the latter claim non-arbitrable? The issue arises in the light of typical clause in the Insurance Policy providing for arbitration only in respect of disputes