JUDGMENT

ALEXANDER THOMAS, J.

The afore captioned appeal is filed under Sec.37(1)(b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “The Act”) to impugn the final order dated 31.01.2017 rendered by the Additional District Court-IV, Kozhikode dismissing O.P(Arb.)No.79/2016 which is a petition filed by the appellants herein/respondents before the Arbitrator under section 34 of the Act to set aside the award.

2. The appellants herein are the respondents in the arbitration claim instituted by the respondent herein before the sole Arbitrator in AOP No.13/2013 in which the award was rendered against the appellants herein. Being aggrieved by the said award of the Arbitrator, the appellants herein had preferred a petition under Sec. 34 of the Act to set aside the award before the District Court, and the District Court has dismissed the said petition viz., OP(Arb.) No.79/2016. Now being aggrieved by the order dated 31.01.2017 rendered by the District Court concerned dismissing OP(Arb.) No.79/2016 (which is a petition filed under Sec.34 to set aside the award), the appellants have preferred the instant Arbitration Appeal under Sec.37(1)(b) of the Act.

3. Heard Sri.Mohammad Salahudhin, the learned counsel appearing for the appellants herein and Sri.C.Harikumar, the learned counsel appearing for the respondent herein/claimant in the arbitration case.

4. The claim petition was filed by the respondent herein before the sole Arbitrator in terms of the Act. The claimant is a non-banking financial company doing business in hire purchase, lease, loan cum hypothecation and allied business. The appellants herein had borrowed an amount of Rs.2,60,000/- from the respondent company and entered into loan hypothecation agreement with the claimant on 21.01.2008 for purchasing a second hand lorry and the total agreement value was Rs.3,89,622/- payable in 46 monthly instalments and it was also agreed by the appellants that they would pay the overdue interest @ 3% per month in the case of default payment of monthly instalments, insurance premium etc. incurred by the respondent company. It is the specific case of the claimant that the appellants were irregular in clearing the loan instalments and which resulted in serious defaults and despite various repeated demands, the appellants did not care to pay the balance amount. Thereupon in terms of the agreement, the respondent/claimant had requested the appellants herein to surrender the vehicle and that consequently the vehicle was voluntarily surrendered by the appellants herein and the claimant sold the said vehicle on 25.04.2012 for a sale consideration of Rs.1,00,000/- which according to the claimant was the best available market price at that time taking into account the age and use of the vehicle. Further, the appellants had not paid the balance amounts even after the repeated demands and notice and which resulted in institution of the arbitration claim on 28.02.2013. A reading of the arbitral award would indicate that both sides have entered appearance and tendered their respective contentions and the Arbitrator found that the claim petition is maintainable and further on merits it was found that agreement (Annexure A1 therein) would show that the appellants herein jointly borrowed a sum of Rs.2,60,000/- agreeing to repay the total value of Rs.3,89,622/- in 46 equal monthly instalments as told therein. Further that after deducting the sale value of the vehicle coming to Rs.1,00,000/- the claimant contended that balance due is Rs.2,32,854/-. However, the Arbitrator found that the claimant's case for showing the expense of Rs.11,800/- was without assigning any specific reasons and that the said amount of Rs.11,800/- is to be deducted from the claim amount of Rs.2,32,854/- and balance being an amount of Rs.2,21,054/-. It is on this basis that the Arbitrator rendered the award ordering that the respondents therein/appellants herein are liable to pay Rs.2,21,054/- as on 25.04.2012 an