SANDHU MOTOR FINANCE PVT. LTD. Vs. SUSHIL KUMAR

JUDGEMENT

(1.) A petition under Sec. 11(5) of the Arbitration and Conciliation Act, 1996 has been filed on behalf of the petitioner for appointment of the Arbitrator.

(2.) It is submitted that respondent No.1 took a personal loan for a sum of Rs.5,00,000.00 along with interest @ 36% for a period of 15 months from the petitioner. The respondent No.2 is the guarantor and they entered into a Loan Agreement dtd. 6/12/2018 on the terms and conditions stipulated therein. In discharge of the loan liability, respondent No.1 issued a post dated Cheque bearing No.040920 dtd. 6/3/2020 for a sum of Rs.7,25,000.00 inclusive of interest. After the expiry of the loan period, the Cheque was presented for encashment, but it was dishonoured due to "Insufficient Funds". Demand Notice dtd. 21/9/2020 was issued to respondent No.1, but the respondent failed to pay the amount. A Complaint Case under Sec. 138 N.I. Act has already been filed, which is pending in the Court.

(3.) A Notice for Invocation of Arbitration was sent on 17/7/2021, in terms of Arbitration Clause 17 of the Loan Agreement. In terms of Notice of Invocation, Ms. Priyanka Agarwal, Advocate was nominated as the Sole Arbitrator to adjudicate the disputes. The learned Sole Arbitrator entered into reference on 13/8/2021 and Statement of Claim was filed by the petitioner. However, the respondent failed to appear despite service and was proceeded ex-parte. Ex-parte Award dtd. 29/4/2022 was passed by the learned Arbitrator in the sum of Rs.5,00,000.00 along with interest @ 36% per annum.