“Be that as it may, in the present case I am unable to accept the contention of the Insurance Company that since they are repudiating the business interruption claim part, the same cannot be referred to arbitration. Since the business interruption loss claim is clearly dependent on the material damage claim which is accepted even by the Insurance Company under the policy, it has to be decided by arbitration alone. It is not as though the claims for material damage and business interruption are totally distinct and unconnected altogether. The very business interruption Clause in Section II itself, clearly refers to the indemnity Clause to material damage suffered by the policy holder. Therefore, both the claims are intertwined and cannot be separated, relegating the parties to litigate before different Forums, one before the Arbitrator and another before the Civil Court.”
Link to the judgement here