SUNIL NANDA Vs. L & T FINANCE LTD

JUDGEMENT

(1.) BY this order, I propose to decide the abovementioned petition under Section 34 of the Arbitration and Conciliation Act, 1996 filed by Mr.Sunil Nanda, the petitioner, against the impugned Award dated 29th July, 2011 published by the sole Arbitrator.

(2.) THE present petition involves the question, whether a guarantor for a loan, who is not a party to the loan agreement which contains an arbitration clause, admittedly executed between the lender, namely, L & T Finance Ltd. (respondent No.1 herein) and borrower, namely, Mr.Aditya Talwar (respondent No.2 herein) can be made a party to a reference to arbitration with regard to a dispute relating to repayment of a loan.

(3.) FEW facts which are necessary to decide the present petition are that under the loan agreement, respondent No.1 extended a loan to respondent No.2 to the extent of Rs.66 lacs for purchase of three truck chasis. Respondent No.2 was irregular in making the payment of principal and interest to respondent No.1 who repossessed and sold the vehicles. The details of the same are given as under: -