SHAMSUDEEN, S/O RAI MAMMED, THRIKKANNOOR, PILATHOTTATHIL HOUSE, THENJIPPALAM PO, MALAPPURAM DISTRICT Vs. M/S. SHREERAM TRANSPORT FINANCE CO. LTD., IIND FLOOR, N.K.TOWER, NILAMBUR ROAD, MANJERI, MALAPPURAM DISTRICT

JUDGEMENT

(1.) A loan of Rs. 4,68,000.00 was availed of by the appellant and the second respondent from the first respondent. The loan was availed of for the purchase of a vehicle. The vehicle purchased was hypothecated to the first respondent. The loan was to be repaid in instalments. The instalments were defaulted. This led to the repossession of the vehicle by the first respondent. It sold the vehicle for Rs.2,01,000.00. The balance was stated to be Rs.2,25,000.00. There was an arbitration clause in the hypothecation agreement. The arbitrator awarded Rs.3,22,730.00 as the amount to be paid to the first respondent by the appellant and the second respondent. It appears that the appellant and the second respondent did not appear before the arbitrator.

(2.) O.P.(Arb.)No.25 of 2016 was filed before the District Court, Manjeri under section 34(1) of the Arbitration and Conciliation Act, 1996 (the Act for short). It was filed by the appellant to get the arbitration award set aside. The learned District Judge heard the maintainability of the application and dismissed it as not maintainable. It was found that there was a breach of section 34(5) of the Act.

(3.) We heard the learned counsel for the appellant and the first respondent.