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CHANDRA DHARI SINGH
Hero Fincorp Ltd. – Appellant
Versus
Shahdara X-ray And Pathology Centre – Respondent
ORDER
Chandra Dhari Singh, J. (Oral)
1. The present petition has been filed by the petitioner under section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of arbitrator for adjudication of disputes between the parties arising qua the Loan Agreements dated 30th January, 2016 and 26th February, 2016.
2. Learned counsel appearing on behalf of the petitioner submitted that the petitioner is a non-banking financial company duly incorporated under the Companies Act, 1956 and the respondent No. l is a proprietorship firm of which respondent No.2 is the proprietor and the respondents No.3 (through her legal heir), 4 and 5 are the co-borrowers of the loan provided to the respondent No. l.
3. It has been submitted on behalf of the petitioner that the petitioner was jointly approached by all the respondents to advance a loan of Rs. 4,89,00,000/- which facility was sanctioned by the petitioner company in favour of the respondents vide sanction letter bearing reference no. HFCL/LAP/01-24/2016 dated 31st January, 2016. It is further submitted that the respondents received the aforementioned facility for a total of 180 months at a variable rate of 12.50% annually. The pet
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 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.
Appointment of Sole Arbitrator and Compliance with 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.
Compliance with arbitration agreement is essential before approaching the court for appointing an arbitrator.
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