Contract Act I 500 Words @ 90 WPM I Shorthand Dictations transcriptions

Contract Act I 500 Words @ 90 WPM I Shorthand Dictations transcriptions

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Learned counsel for the respondent contended that the observation was clearly in the nature of an obiter dicta.and did not lay down the correct law. That was a case in which respondent no.1 had entered into a contract with respondent no. 2 for taking advances of the security of the factory premises, plant and machinery. A mortgage was executed by him in favour of the respondent-Bank. The bank Insured the mortgage properties from time to time with the appellant-company under different insurance policies. A fire broke out in the factory premises and the insurance company was duly informed. The surveyor estimated the loss at Rs. 4,600/- without prejudice to the terms and conditions of the policy. After some correspondence, the 120 appellant-Insurance company repudiated the claim under the terms of the policy. Thereupon, respondent no.1 wrote to the Insurance company that since it 140 had repudiated the claim, a difference had arisen between the parties and appointed a sole arbitrator to decide the dispute. At the time, it mentioned that if tho insurance company desired to nominate an arbitrator, It may do so. The insurance company however took the stand that since it had repudiated the claim, the arbitration clause in the policy was Tendered inoperative and no arbitration proceedings could legally be initiated. This led to the respondent no.1 filing an application 20 under section 20 of the Arbitration Act. The application was contested and since the trial
court held that on the repudiation of the claim under clause 13, the dispute fell within the scope of the arbitration clause 18 but was
#tips #tricks #ssc #stenographer #armyin view of clause 19. The High Court, therefore, reversed the trial court order and remanded the case for appointment of arbitrators. The insurance company carried the matter to this court. While 300 dealing with the submissions at the bar, this :: court in paragraph 8 of the Judgment observed. that only one point need to be decided namely whether in view of the repudiation of the liability under clause 13, a dispute was raised which could be referred to arbitration. Il also said that Incidentally reference will be made to E the other question as to whether the proceedings were barred by clause 19 of the policy. This court answered the first point in the ...negative and hence no decision was necessary on the second point but the Court answered it only incidentally. This is also clear from the observation extracted earlier. From the case law referred to above, the legal position that emerges is that an agreement which seeks to curtail the period of limitation and prescribes a shorter period than that...20........ prescribed by law would be void as offending Section 28 of the Contract Act. That is because A such an agreement would seek to restrict the party from enforcing his right in Court after the period prescribed under the agreement expires even though the period prescribed by law for the enforcement of his right has yet not expired.

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