HEDGE FINANCE LIMITED Vs. SOUTHERN INVESTMENTS PVT LTD.

JUDGEMENT

(1.) These are applications filed under Section 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 ('Act 3 of 2016' for short) seeking appointment of an arbitrator for resolution of disputes between the applicant herein and the respondents consequent to agreement dated 3.06.2015 and 24.3.2016.

(2.) The applicant is a registered Non Banking Financial Company (NBFC) and is registered in accordance with the Banking Regulation Act, 1949 and the regulations issued by the Reserve Bank of India. They are engaged in the business of advancing money on the strength of securities. The 1st respondent is a builder engaged in the construction of residential apartment complexes. Their registered corporate office is at Chennai in the State of Tamil Nadu. The 2nd respondent is the Managing Director of the 1st respondent.

(3.) A sum of Rs.2 Crores was advanced to the 1st opposite party by agreement dated 3.6.2015 and a further sum of Rs 2.4 Crores was advanced on the strength of agreement dated 24.3.2016 for the purpose of construction of multi-storied apartment complex. Default was committed by the 1st opposite party in repaying the amount and according to the applicant, huge sums remain outstanding.