METRO BUILDTECH PVT. LTD. Vs. STANDARD CHARTERED BANK

JUDGEMENT

(1.) PRESENT is an appeal under Section 37(2)(a) of the Arbitration and issue 12, Page 42 Conciliation Act, 1996 (hereinafter referred to as 'the Act') against the impugned order dated 16th March, 2012 passed by the learned arbitrator under Section 17 of the Act in an arbitration matter between the parties. The relevant factual background is as under:

(2.) THE second installment of Rs. 1 crore was given by way of cheque which was honoured. Two cheques of Rs. 2 crores each were dishonoured on account of insufficient funds and cheque of Rs. 9 crores was not presented by the respondent at the request of the appellant. It is stated that on 3rd April, 2009, appellant approached respondent for rescheduling the payment of balance consideration due to economic recession. It is stated that on 16th April, 2009, appellant came to know of the judgment in Kotak Mahindra Bank Ltd. vs. O.L. of APS Star Ind. Ltd.,, (2009) 3 Comp LJ (Guj.), wherein it is held that an assignment deed whereby a debt is assigned by a bank to a private third party along with the underlying security is not a valid instrument. Accordingly, appellant got worried as they had already made huge payment and appellant immediately sent a letter dated 16th April, 2009 to the respondent bringing to its notice the aforesaid facts.

(3.) AGGRIEVED with the said order, present appeal is filed.