M/s Triveni Adhesive and Tapes and 2 others v.The New India Assurance Company Limited
Allahabad High Court
This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 challenged a Commercial Court's order setting aside an arbitral award in an insurance dispute. The appellants, a partnership firm manufacturing adhesive tapes, suffered total destruction of their manufacturing unit due to a fire on 02.09.2018 and claimed Rs. 3,76,00,000/- under two insurance policies with the respondent. The Arbitrator awarded an additional Rs. 1,56,68,498/- with interest, but the Commercial Court set aside the award for patent illegality and being against public policy. The Allahabad High Court dismissed both the appeal and the appellants' application under Section 34(4) seeking remand, holding that the award lacked findings on contentious issues rather than merely lacking reasons, and therefore the discretionary power under Section 34(4) could not be exercised.