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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH : NAGPUR
G. A. SANAP, J.
Nishant Multistate Co-operative Credit Society, Ltd. Gandhi Road, Akola – Appellant
Versus
Baba Sai Corporation, Through Its Proprietor Mr. Vivek Sudhakarrao Kakad – Respondent
JUDGMENT :
In this appeal, filed under Section 37 of the Arbitration and Conciliation Act, 1996 (for short, “the Act of 1996”), challenge is to the judgment and order dated 31st October, 2017, passed by the learned Principal District Judge, Amravati, whereby the learned Principal District Judge allowed the application made by the respondent under Section 34 of the Act of 1996 and set aside the award dated 26th April, 2014, passed by the learned sole Arbitrator.
2. The facts are as follows:
The appellant is a Multistate Credit Co-operative Society. The respondent borrowed a sum of Rs.17,00,000/- from the appellant on 28th January, 2011. The loan agreement stipulated the terms and conditions with regard to the repayment, interest, security, etc. As agreed, the respondent pledged 100 cotton bales weighing 187 quintals at the relevant time, lying in the Charbhuja Ware Housing Godown owned by the appellant. The rate of the cotton bales mutually agreed at that time was Rs.13,202.25 per quintal. The loan amount was to be repaid on or before 19th March, 2011. In case of failure of the respondent to repay the loan amount within the stipulated time, the appellant had the right to sell the cotto
The court reaffirmed that under Section 34 of the Arbitration and Conciliation Act, 1996, the scope for judicial interference with arbitral awards is limited, focusing on procedural compliance and th....
The court affirmed that judicial intervention in arbitral awards is limited to grounds of public policy or patent illegality, emphasizing respect for the Arbitrator's findings.
The court upheld the limited scope of intervention in arbitration awards, emphasizing that arbitrators must adequately address counter-claims and provide reasons for decisions to avoid judicial misco....
A tribunal must follow natural justice principles, allowing parties to present evidence; failure to do so renders an award susceptible to being set aside.
The main legal point established in the judgment is that the failure to consider Clause 702 of the IRS conditions led to a patent illegality in the award, justifying its setting aside.
The main legal point established in the judgment is that objections to jurisdiction must be raised at the appropriate stage, and the findings of the arbitrator on the point of jurisdiction, if not ch....
The main legal point established in the judgment is that an arbitral award can be set aside if it suffers from misconduct of the arbitral proceeding, lack of proper notice, and overstepping the point....
The scope of judicial intervention in arbitration awards under Section 34 of the Arbitration and Conciliation Act, 1996, is limited to assessing procedural validity, not merits of the case.
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