NEWGEN SPECIALTY PLASTIC LTD. Vs. INTEC CAPITAL LTD.

JUDGEMENT

(1.) This first appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') is filed against the impugned judgment of the court below dated 6.3.2017 dismissing the objections filed by the appellant under Section 34 of the Act.

(2.) The facts of the case are that appellant/objector had obtained a loan from the respondent for purchase of equipments for his business. The loan advanced was for a sum of Rs.3 crores. Loan agreement was executed on 30.4.2014 and appellant had to repay the loan in 71 equated monthly installments of Rs.6,20,305/- each. The equipments purchased from the loan amount were hypothecated to the respondent. Appellant also tendered a collateral security for a sum of Rs.90,00,000/-, and which amount was to be returned with interest at the rate of 7% per annum for 51 months subject however to discharge of the obligations of the appellant under the loan agreement. Since the appellant failed to pay the monthly installments on time, hence there arose dues of Rs.2,80,25,074/-, and to recover which claim the respondent/lender invoked arbitration proceedings.

(3.) Appellant/applicant appeared in the arbitration proceedings on some dates but thereafter failed to appear and hence was proceeded ex-parte. The respondent thereafter led ex-parte evidence. The impugned award dated 11.2.2016 was then passed decreeing the recovery of the amount along with interest but subject to adjustment to be granted to the appellant with respect to the collateral amount of Rs.90,00,000/-