TMI Blog1951 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... by means of a policy taken with Ruby General Insurance Company Limited on 21-12-1947, the policy being renewed on 13-02-1948, for a further period of three months. On the night between 20 and 21-03-1948, a fire took place in the godowns of the Ginning Factory in which it is alleged that the whole stock of cotton was destroyed. The news of this fire was conveyed to the Insurance Company by the interested Bank by means of a letter dated 22-03-1948. Thereafter a difference arose between the parties regarding the amount payable by the Insurance Company for the damage to the cotton. Negotiations went on for some time and on 21-01-1949, the Insurance Company made an offer to pay ₹ 22,500/ - in full and final settlement of the loss. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, being filed within 12 months of the date of the fire which gave rise to the loss or damage could be regarded as a pending action. He accordingly ordered that the arbitration agreement contained in Clause 18 in the policy should be filed in Court and fixed 'a date for the parties' statements regarding whether they could agree on any arbitrator. An appeal against this order was filed in this Court by the Insurance Company. The appeal was decided in the Company's favour by Kapur J. on 06-07-1950 on the following findings as summarised at the end of his judgment: 1. That a limitation placed by the terms of a policy during which a claim can be made or after which excepting in certain contingencies the liability of the insure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubt correct in stating that the word 'action' is not a word which is used in Indian Law, and therefore it would appear that the word must be given the meaning which it has in English law, on which point it does not seem to me that there can be any better authority than Halsbury's Laws of England. The definition of the word 'action' appears at the very beginning on p. 2 of Vol. I, Para 1, which reads: An 'action' according to the legal meaning of the term, is a proceeding by which one party seeks in a Court of justice to enforce some right against, or to restrain the commission of some wrong by, Anr. party. More concisely it may be said to be 'the legal demand of a right,' or 'the mode of pursuing a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e In any action, suit or other proceedings, the burden of proving. 2. Clause 6 begins with the words: In any action, suit or other proceedings.... 3. In Clause 13 the words occur: If the claim be made and rejected and an action or suit is not commenced within three months after such rejection. 4. Clause 18 is the clause which relates to the reference of any dispute between parties to arbitration and it concludes with the sentence: It shall be a condition precedent to any right of action or suit upon this Policy that the award by such arbitrator, arbitrators or umpire of the amount of the loss or damage if disputed shall first be obtained. 7. The only other use of the word 'action' is in the clause now under consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; is intended to have a wider meaning than the word 'suit'. As a matter of fact, when he was asked what the meaning of the word 'action' in the terms of the Policy was, the learned Counsel for the Respondent, although he tried to maintain that for the purpose of Clause 19 the word was synonymous to 'suit', at Anr. time said that the word 'action' must be taken to have its meaning in English Law. This meaning is obviously very wide indeed if we are to rely on the authority of Halsbury, than which it does not seem there can be any better authority. Indeed, the definitions of the word 'action' contained in other Law Dictionaries and Lexicons appear to be based on Halsbury. In the circumstances I am of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was that even if the word 'action' in the clause in dispute were held to be synonymous with suit, it would still cover an application under Section 20, Arbitration Act. The grounds on which this argument was based are that in Sub-Section 2 of Section 20 it is provided that the application should be in writing and shall be numbered and registered as a suit between one and more of the parties interested or claiming to be interested as plff. or plffs. and the remainder as deft. or defts., and elsewhere in the Act in Section 41-A it is laid down that the provisions of Code of Civil Procedure shall apply to all proceedings before the Court and appeals under the Act. I do not, however, think it is necessary to embark on a long discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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