In Brief
The appellant sought fire insurance recovery for jute stock stored with mortgagee Bank of Baroda. The appellant requested a policy increase from Rs. 20 lakhs to Rs. 25 lakhs; the insurer rejected the increase. Two arbitrators disagreed on valuation: one favoured the appellant (Rs. 23.5 lakhs), the other favoured the insurer's surveyor's report (Rs. 12.3 lakhs). The Umpire concluded the policy was impliedly increased via estoppel by conduct and valued stock at purchase price (Rs. 703.21/quintal). Lower courts set aside the award as misconceived. The Supreme Court upheld the Umpire's Award, holding that estoppel by conduct is valid, the Umpire's interpretation was reasoned, and arbitration awards warrant judicial restraint.", <parameter name="disposition">allowed
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