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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
SANJEEV PRAKASH SHARMA, ACJ., BALJINDER SINGH SANDHU
Adarsh Co-Operative Bank Limited, (Formerly Madhav Nagrik Sahakari Bank Limited) Through Its Authorized Officer – Appellant
Versus
Prem Singh Vaidya, S/o. Shri Navrang Singh – Respondent
ORDER :
Baljinder Singh Sandhu, J.
1. The present appeal under Section 37 in The Arbitration And Conciliation Act, 1996 (hereinafter referred to as ‘Act of 1996’) has been preferred by the appellant Adarsh cooperative Bank limited (hereinafter referred to as ‘the Bank’) assailing the order dated 12.10.2023 passed by the commercial Court No.1, Jaipur Metropolitan-II, Jaipur by which the objection application under section 34 of the Act of 1996 filed by the respondent has been allowed and the award dated 11.12.2016 passed by arbitrator has been set aside.
2. The brief facts giving rise to the present miscellaneous appeal are that the appellant Bank which is a multi-state cooperative Bank sanctioned a home renovation loan to the tune of Rs.91,000/- to the respondent Prem Singh Vaidya on 07.11.2007.
3. A term loan agreement dated 12.11.2017 was also executed between the parties and the loan was to be paid in sixty installments at the prevalent interest rates. The respondent defaulted in the payment of loan and the last installment was paid on 09.09.2009 and thereafter, the account was declared as non performing asset (NPA). Since, the appellant Bank is a cooperative bank and the responde
Statutory arbitration under the Multi-State Cooperative Societies Act governs disputes between cooperatives and members, with a 6-year limitation period applying, overriding general limitation laws.
The court affirmed that statutory arbitration procedures were followed, and the appellants could not challenge the arbitrator's appointment after agreeing to arbitration in the loan agreement.
Arbitral award liable to be set aside under Section 34 for patent illegality where arbitrator assumes jurisdiction under Section 84 of Multi-State Cooperative Societies Act without proof of borrowers....
Section 84 which falls under Chapter IX “Settlement of Disputes” of the Act, 2002 refers to reference of the disputes by the Central Registrar, Cooperative Societies with regard to the disputes touch....
Court clarified that initial appointment of an Arbitrator must derive authority from the Arbitration Act, rejecting jurisdiction under Section 8 and confirming that participation does not waive juris....
The Arbitrator's jurisdiction under the Kerala Cooperative Societies Act is not limited to express powers, allowing for broader application of authority to ensure justice.
The appointment of an arbitrator with potential bias due to their governmental role violates Section 12(5) of the Arbitration and Conciliation Act, necessitating an independent arbitrator.
The Micro, Small and Medium Enterprises Development Act has precedence over the Arbitration and Conciliation Act, allowing parties to reference disputes to the MSEFC despite existing arbitration agre....
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