ARABIAN EXPORTS PRIVATE LIMITED versus NATIONAL INSURANCE COMPANY LTD.

Citation: [2025] 5 S.C.R. 798 · Decided: 06-05-2025 · Supreme Court of India · Bench: ABHAY S. OKA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2025] 5 S.C.R. 798 : 2025 INSC 630
Arabian Exports Private Limited 
v. 
National Insurance Company Ltd.
(Civil Appeal No(s). 6372-6373 of 2025)
06 May 2025
[Abhay S. Oka and Ujjal Bhuyan,* JJ.]
Issue for Consideration
Whether a dispute raised by an insured after giving a full and final 
discharge voucher to the insurer can be referred to arbitration.
Headnotes†
Arbitration and Conciliation Act, 1996 – s.11 – Appellant 
claimed loss and damages under the insurance policies taken 
from the respondent – After a considerable delay, a grossly 
inadequate amount was offered by the respondent – Due to 
financial strain, appellant signed the undated and standardized 
voucher/advance receipt – Pursuant thereto, appellant received 
the cheque issued by the respondent – Later, appellant 
invoked arbitration clause to settle the balance amount being 
the difference between the claim lodged by the appellant and 
the amount paid by the respondent – Respondent denied any 
liability and refused to accept arbitration – Appellant filed 
applications u/s.11 of the Act for appointment of arbitrator – 
High Court held that no arbitrator could be appointed in view 
of acceptance of the amount in full and final settlement – 
Correctness:
Held: High Court was wrong in rejecting the s.11(6) applications 
of the appellant – The question as to whether the appellant was 
compelled to sign the standardized voucher/advance receipt 
forwarded to it by the respondent out of economic duress and 
whether notwithstanding receipt of Rs. 1,88,14,146.00 as against 
the claim of Rs. 5,71,69,554.00 the claim to arbitration is sustainable 
or not are clearly within the domain of the arbitral tribunal – Thus, 
impugned order set aside. [Paras 41, 42]
Arbitration and Conciliation Act, 1996 – Invocation of arbitration 
after settlement between the parties – Concept of ‘accord and 
satisfaction’ – Discussed. [Paras 33-39]
* Author
[2025] 5 S.C.R. 
799
Arabian Exports Private Limited v. National Insurance Company Ltd.
Arbitration and Conciliation Act, 1996 – Doctrine of kompetenz-
kompetenz firmly embedded in arbitration jurisprudence in 
India – Discussed. [Para 40]
Case Law Cited
National Insurance Company Limited v. Boghara Polyfab Private 
Limited [2008] 13 SCR 638 : (2009) 1 SCC 267; Nathani Steels 
Ltd. v. Associated Constructions (1995) Supp. 3 SCC 324; Duro 
Felguera, S.A. v. Gangavaram Port Ltd. [2017] 10 SCR 285 : 
(2017) 9 SCC 729; Vidya Drolia v. Durga Trading Corporation 
[2020] 11 SCR 1001 : (2021) 2 SCC 1; Oriental Insurance 
Company Ltd. v. Dicitex Furnishing Ltd. [2019] 14 SCR 389  : 
(2020) 4 SCC 621; SBI General Insurance Co. Ltd. v. Krish 
Spinning SBI General Insurance Co. Ltd. v. Krish Spinning [2024] 
7 SCR 840 : 2024 SCC OnLine SC 1754; Aslam Ismail Khan 
Deshmukh v. Asap Fluids Pvt. Ltd. [2024] 12 SCR 108 : (2025) 
1 SCC 502 – referred to.
List of Acts
Arbitration and Conciliation Act, 1996.
List of Keywords
Insurance policies; Full and final discharge vouchers; Accord and 
satisfaction; Res integra; Undated and standardized voucher/
advance receipt; Financial duress; Bilateral negotiated settlement; 
Arbitrable disputes; Plea of coercion; Doctrine of kompetenz-
kompetenz; Minimum judicial intervention.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 6372-6373 
of 2025
From the Judgment and Order dated 02.12.2011 of the High Court 
of Judicature at Bombay in AA Nos. 186 and 187 of 2011
Appearances for Parties
Advs. for the Appellant:
Kavin Gulati, Sr. Adv., Ms. Surekha Raman, Amarjit Singh Bede, 
Shreyash Kumar, Mohit Shivkumar, Dushyant Sharma, Abhinav 
Mathur (for M/S. K J John and Co.)
800
[2025] 5 S.C.R.
Supreme Court Reports
Advs. for the Respondents:
Manish Singhvi, Sr. Adv., Vishnu Mehra, Ms. Manjeet Chawla,  
Mrs. Usha Pant Kukreti, Kunal Malhotra.
Judgment / Order of the Supreme Court
Judgment
Ujjal Bhuyan, J.
Leave granted.
2.	
These appeals by special leave are directed against the order dated 
02.12.2011 passed by the High Court of Judicature at Bombay in 
Arbitration Application Nos. 186-187 of 2011.
3.	
In this case, delay was condoned and notice was issued on 
11.05.2012.
4.	
The short issue for consideration in these appeals is whether a 
dispute raised by an insured after giving a full and final discharge 
voucher to the insurer can be referred to arbitration.
5.	
As we shall deliberate upon, this issue is no longer res integra.
6.	
However, for a proper perspective, relevant facts may be briefly n

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