SHRIRAM FINANCE LIMITED Vs. ABDUL RASHEED

JUDGEMENT

(1.) This Arbitration Request is filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') for the appointment of sole Arbitrator to adjudicate the disputes arisen between the applicant and the respondents.

(2.) The applicant claims to be a Non-Banking Finance Company, incorporated under the Companies Act, engaged in the business of loan on security of vehicles. Respondent No.1 is said to have availed a loan facility from the applicant for the purchase of a car, with the 2nd respondent as guarantor. As per Annexure-A hypothecation cum loan agreement executed in between the applicant and the respondents on 10/2/2023, the total loan amount of Rs.3,50,000.00 ought to have been repaid by way of 48 monthly instalments. The applicant resorted to attachment of the vehicle by invoking Sec. 9 of the Act since the respondents defaulted repayment of the loan. Though the applicant issued Annexure-B lawyer's notice to the respondents invoking Arbitration Clause of the loan agreement for the appointment of an Arbitrator, the respondents neither replied nor objected the appointment of Arbitrator even after the lapse of more than 30 days. It is under the above circumstances that the applicant has approached this Court for the appointment of an Arbitrator for the determination of disputes and differences between the parties arising out of Annexure-A agreement.

(3.) Though the respondents were duly served with notice, they did not choose to appear or to file any counter.