ORDER

Originally, an Arbitration Award was passed on 30.07.2019 in Arbitration Case No. JJ-Bajaj Arb-164, directing the petitioners to pay jointly and severally a sum of Rs.16,90,111.00 (Rupees Sixteen Lakhs Ninety Thousand One Hundred and Eleven Only) to the respondent together with interest on the outstanding due of Rs.16,90,111.00 at 15% per annum from the date of award till the payment by the petitioners or realization thereof by the respondent. Based on the above award, the respondent / claimant filed an Execution Petition in E.P.No.808 of 2020 in Arbitration Case No. JJ-Bajaj Arb-164 before the XXVIII Asst Judge, City Civil Court, Chennai. The XXVIII Asst Judge, after hearing both sides, passed an order of attachment on 02.03.2023. Aggrieved by the same, the present CRP is filed.

2. The learned counsel for the petitioners would submit that the Arbitration proceeding initiated against the petitioners without having jurisdiction. The loan agreement entered at Chennai and the loan disbursed at Chennai, but the respondent appointed the arbitrator at Pune in Maharashtra and the same was raised before the Lower Court, but the Lower Court did not consider the same. Further, he would submit that the petitioners were not given proper notice or intimation before appointing the arbitrator by the respondent, therefore the award passed by the arbitrator is not binding on the petitioners.

3. Heard the learned counsel for the petitioner and perused the materials available on record.

4. The dispute between the parties is in respect of a loan agreement entered into by the parties on 30.06.2019. The said agreement contained an arbitration clause. The petitioner, who is the lender, failed to adhere to the terms of repayment of the loan and committed defaults. Hence, an arbitration proceeding was initiated against the petitioner by the respondent / claimant.

5. On perusal of the records, it is seen that the petitioners have been set exparte in the Arbitral Proceedings for their non-appearance before the Court. It is further seen that, before passing the award, notice was duly served to the petitioners. In spite of the notice, they failed to appear before the Court. The respondent has appeared through counsel and submitted his claim and put all his defence. The learned arbitrator has scrutinized the entire documents produced by the respondent based on the terms and conditions agreed between the parties and found that there was an execution of loan agreement between the parties and the petitioners have committed default in repayment of loan. Based on the said observation, the learned arbitrator has passed an award on 30.07.2019 in favour of the claimant / respondent herein. The respondent thereafter filed an execution petition and sought for execution of the award by attachment and sale of the properties mentioned in schedule to the execution petition. The E.P. was allowed mainly on the ground that there was no challenge made by the petitioners against the award dated

30.07.2019 by way of filing an appeal.

6. This Court does not find any irregularity in the order passed by the Learned XXVIII Asst Judge, City Civil Court, Chennai. The arbitration award was passed on 30.07.2019 and execution petition was filed by the respondent on 29.01.2020. The petitioners have entered appearance before the Court only after receiving notice in the execution petition and they have not filed any appeal challenging the award passed by the Arbitral Tribunal. The petitioners have not even stated any reason why they have not chosen to challenge the award and therefore, this Court is not inclined to entertain this petition.

7. Accordingly, this Civil Revision Petition is dismissed. No costs.

Consequently, connected miscellaneous petition is closed.

21.08.2023 raja Index : yes/no Internet : yes/no To The XXVIII Assistant, City Civil Court, Chennai V.BHAVANI SUBBAROYAN.J., raja and C.M.P.No.17839 of 2023

21.08.2023