ORIENTAL INSURANCE COMPANY LIMITED vs M/S NARBHERAM POWER AND STEEL PVT LTD

The Supreme Court addressed the issue of arbitration in insurance disputes under Section 11(6) of the Arbitration and Conciliation Act, 1996. The Court held that a repudiation of a claim by the insurer does not preclude the reference of disputes to arbitration, particularly when the repudiation pertains to the quantum of the claim rather than the liability itself. The High Court's appointment of an arbitrator was upheld, affirming that the arbitration clause must be interpreted purposively to avoid rendering it meaningless.