MAGNOSTAR TELECOMMUNICATIONS Vs. KOTAK MAHINDRA BANK LTD

JUDGEMENT

(1.) This is a petition under Section 11 of the Arbitration and Conciliation Act, 1996, whereby the petitioner, a borrower, seeks reference of certain disputes between it and the respondent bank/lender , to arbitration, in terms of the following Clause:

(2.) The petitioner states that disputes have arisen between the parties on account of failure of the respondent, inter alia, to sanction the loan in a timely manner and therefore, the petitioner is alleged to have been caused losses. Paras 5 and 8 of the petition brings into focus the disputes between the parties and the same read as under:

(3.) The respondent has appeared and opposed the reference of the disputes to arbitration. The contention of the respondent is that by virtue of the aforesaid Arbitration Clause, the subject matter of the dispute in the present case, falls within the jurisdiction of the Debt Recovery Tribunal (DRT) and by virtue of the aforestated agreed Arbitration Clause, the subject matter of the disputes ought to be decided only by the DRT and not by arbitration.