SHOBHRAJ MOTWANI Vs. BMR LEASE AND CREDIT LTD

JUDGEMENT

(1.) THIS appeal is directed against the order dated 29.02.2012 whereby an application filed by the appellant for grant of leave to contest was dismissed and consequently a decree for recovery of Rs.11,27,862/- with costs as well as pendente lite and future interest at the rate of 10% per annum was passed against the appellant.

(2.) A suit for recovery of Rs.11,27,862/- under the provisions of Order 37 of the Code of Civil Procedure was filed by the respondent against the appellant. The respondent which is a financial institution had granted a loan of Rs.7.5 lakhs to the appellant on 28.12.2006. The loan was to be re-paid in equated monthly instalment, along with interest at the rate of 24% per annum. Alleging default in repayment, the abovereferred suit was filed by the respondent.

(3.) A careful analysis of Section 8 of Arbitration and Conciliation Act, 1996 would show that the following conditions are required to be fulfilled before the Court can refer the matter to arbitration;