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DELHI HIGH COURT
SURESH KUMAR KAIT
Hero Fincorp. Limited – Appellant
Versus
Varun Mahinder Jajoo – Respondent
| Table of Content |
|---|
| 1. arbitration clause invoked due to loan default. (Para 1 , 2 , 3 , 4 , 5) |
| 2. parties present arguments regarding arbitration. (Para 6 , 7) |
| 3. appointment of sole arbitrator confirmed. (Para 8 , 9 , 10) |
| 4. petition disposed; order copy sent. (Para 11 , 12) |
1. 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
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 can appoint a sole arbitrator under the Arbitration and Conciliation Act when parties fail to agree on common terms after dispute notifications.
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 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 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.
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....
Parties can consent to arbitration of disputes, allowing the court to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
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