The applicant insurer sought appointment of an arbitrator under a trade credit insurance policy after the insured failed to account for recoveries obtained from a delinquent foreign customer.
The respondent argued the dispute arose solely under a later release and assignment agreement that omitted an arbitration clause, and further submitted that delay and the two-year limitation period barred arbitration.
The court held the release did not extinguish the policies, but instead operated in conjunction with them, so the dispute remained one arising under the policies and within the mandatory arbitration clauses.
Applying discoverability under the Limitations Act, 2002, the court found no undue delay and held the arbitration was commenced in time.
The respondent was ordered to appoint an arbitrator by a fixed date, failing which the court appointed one.