Back
SURESH KUMAR KAIT
Hero Fincorp. Limited – Appellant
Versus
Varun Mahinder Jajoo – Respondent
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator to adjudicate the disputes between the parties. Pertinently, petitioner is a non-banking financial company engaged inter alia in the business of rendering finance/loan facilities to the borrowers.
2. According to the petitioner, pursuant to the specific representations inter-alia with respect to adherence of the terms of repayment of the Loan Facility, petitioner Company vide Sanction Letter bearing Reference No.3038827 dated 22.03.2018 sanctioned a Composite Loan Facility in the sum of Rs.5,50,00,000/- jointly in favour of the respondent Nos.1 to 4. Out of the total sanctioned loan amount of Rs.5.50 Crores vide Loan Account/Agreement Nos. HCFDELLAP00002323034 and HCFDELLAP00002322747, the "First Tranche" of Rs.3,00,00,000/- and the "Second Tranche" of Rs.2,50,00,000/- were disbursed by the petitioner Company in favour of the Respondent Nos.1 to 4.
3. Learned counsel for the petitioner submits that a written Loan Agreement dated 23.03.2018 was executed between the Respondent Nos.1 to 4 as Borrowers/Co-Borrowers and the
The main legal point established is the court's authority to appoint a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
The court confirmed that arbitration is appropriate for resolving disputes arising from contractual agreements when parties fail to comply with repayment terms.
The court's decision was based on the provisions of Section 11(5) of the Arbitration and Conciliation Act, 1996, which allows for the appointment of a sole arbitrator to adjudicate disputes.
Appointment of Sole Arbitrator and Compliance with Arbitration and Conciliation Act, 1996
The court can appoint a sole arbitrator under the Arbitration and Conciliation Act when parties fail to agree on common terms after dispute notifications.
The court appointed a sole arbitrator for resolving disputes under a loan agreement after respondents failed to adhere to repayment terms and contested the agreement's existence.
The central legal point established in the judgment is the appointment of a sole arbitrator to adjudicate disputed business loan disputes under the Arbitration and Conciliation Act, 1996.
The main legal point established in the judgment is the court's authority to appoint an Arbitrator under Section 11 of the Arbitration and Conciliation Act when there is a valid Arbitration Clause an....
The central legal point established is the court's authority to appoint an independent sole arbitrator for adjudication of disputes under the Arbitration and Conciliation Act, 1996.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
