SAPNA TUTEJA Vs. L&T FINANCE LTD.

JUDGEMENT

(1.) Vide this present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act'), the petitioners have challenged the ex parte award dated 22.06.2011, passed by respondent No.2, the Arbitrator, in Arbitration Proceedings No. 243/2011, titled as L&T Finance Ltd. vs. Spark Engineers & Contractors and Ors.

(2.) The case of the petitioners is that the petitioner No.1 had taken a loan of Rs.30,00,000/- from respondent No.1 for purchase of machine, namely, Horizontal Directional Drilling Machine with the brand name of Horizon, Model No. RT00 valuing Rs.40,00,000/-. The loan amount was repayable in 35 equal instalments of Rs.1,10,800/-. Petitioner No. 2 was the guarantor of the said loan agreement. The petitioner No.1 had paid the instalments from time to time and till October, 2010.

(3.) It is submitted that petitioners were always ready and willing to repay the loan amount and also handed over the machinery on 16.03.2011 and shown the willingness to pay the balance amount. The award had been challenged being contrary to provision of Section 24(2) of the Act and also on the ground that at no stage of arbitral proceedings, the petitioners were served and they were not aware of the proceedings till receiving the notice of Execution Petition No.297/2012, titled as L&T Finance vs. M/s Spark Engineers and Contractors and Anr. The first notice was first received on 21.09.2013 and thereafter on 03.10.2013