VULCAN INSURANCE CO. LTD vs MAHARAJ SINGH & ANOTHER

The Supreme Court held that under Section 20 of the Arbitration Act, 1940, the arbitration clause does not apply to disputes regarding the insurer's repudiation of a claim. The Court ruled that the only remedy available to the insured after repudiation is to file a suit within three months, as per Clause 13 of the insurance policy, to establish the insurer's liability. The Court clarified that a dispute over the amount of loss arises only if the insurer acknowledges liability, thus the appeal was allowed and the trial court's dismissal was set aside.