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SURESH KUMAR KAIT
Hero Fincorp Limited – Appellant
Versus
S R Store – Respondent
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed under Section 11(6) of the arbitration and Conciliation act, 1996 seeking appointment of sole arbitrator in terms of clause 13 of the Loan agreement, executed between the parties.
2. Petitioner is a company registered under the Companies act, 1956 and registered with Reserve Bank of India. as per the averments made in the present petition, respondents approached the petitioner and sought financial assistance in the form of loan against property. Respondents represented sufficient means to repay the proposed financial facility. Petitioner agreed to grant financial facility to the tune of Rs.3,71,00,000/- to the respondents vide Sanction Letter dated 29.12.2017 in the nature of loan against property. Pursuant to the sanction of the said financial facility, Loan agreement and addendum agreement, dated 30.12.2017 were executed between the parties. Respondents had agreed to pay interest at the rate of 9.25% per annum, payable on monthly basis to the petitioner. It was agreed that the respondents shall repay the financial facility within 180 months. It was further agreed that a penal interest charge of 2.00% per month sha
Appointment of Sole Arbitrator and Compliance with 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.
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 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 court grants an application for the appointment of a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, when a valid arbitration agreement exists and the respondent r....
The court confirmed that arbitration is appropriate for resolving disputes arising from contractual agreements when parties fail to comply with repayment terms.
The court has the authority to appoint a Sole Arbitrator when the respondents fail to appear in an arbitrable dispute.
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