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SURESH KUMAR KAIT
Hero Fincorp. Limited – Appellant
Versus
Hema Automotive Pvt. Ltd. – Respondent
JUDGMENT
(Oral)
1. The above captioned three petitions have been filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes between the parties.
2. Since the parties to these petitions and subject matter thereof is more or less similar, therefore, with the consent of counsel representing both the sides, these petitions have been heard together and are being disposed of by this common judgment.
3. According to petitioner, petitioner-company sanctioned loan facility in the sum of Rs. 30 Crores on 22.01.2018 (in Arb. P.724/2021) Rs. 20 Crores on 22.01.2018 in (Arb. P.726/2021) and Rs. 5 Crores on 23.05.2019 in (Arb. P.728/2021) in favour of the respondent No. 1.
4. According to petitioner, written Loan/Facility Agreements were executed in respect of loan facility between respondent No.1 as borrower and petitioner as lender, wherein respondent Nos. 2 and 3 agreed to guarantee inter alia due repayment of the aforesaid loans as well as adherence of terms and conditions as envisaged therein in their respective personal capacity. Consequently, express Deed of Guarantee dated 23.01.2018, 23.05.2019 and 30.05.2019 (in
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.
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 confirmed that arbitration is appropriate for resolving disputes arising from contractual agreements when parties fail to comply with repayment terms.
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 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.
Appointment of Sole Arbitrator and Compliance with Arbitration and Conciliation Act, 1996
The main legal point established in the judgment is the arbitrability of the dispute under the loan agreement and the court's direction to conduct the arbitration proceedings in accordance with the a....
The court exercises its jurisdiction under Section 11(6) of the Arbitration and Conciliation Act, 1996, to appoint a sole arbitrator when a valid arbitration agreement exists and a party has defaulte....
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