Dispute Raised By An Insurer Over Full And Final Settlement Is Arbitrable Despite Parties Discharging Contract

INTRODUCTION:

The Apex Court in its decision in Arabian Exports Private Limited vs. National Insurance Company Ltd.¹, has held that an arbitral tribunal is competent to rule on its own jurisdiction including on the issue of existence or validity of an arbitration agreement.

FACTS:

The Appellant by way of special leave, filed two appeals against the order dated 2nd December, 2011 passed by the Bombay High Court in Arbitration Applications Nos. 186-187 of 2011 ("said applications").

The Appellant is a company engaged in the business of exporting meat and meat products, operating from its factory at Taloja, Maharashtra ("said factory").

The Appellant bought two policies from the Respondent – a comprehensive Standard Fire and Special Perils policy towards insuring the meat processing and cold storage unit as also the building, plant and machinery, furniture, fixtures and fittings in the said factory ("Policy No. 1") and a Fire Declaration Policy insuring all