PREMA PARANTHAMAN Vs. KOTAK MAHINDRA BANK

JUDGEMENT

(1.) These appeals have been filed by family members, who had availed loan from the respondent under various loan agreements for the purchase of vehicles. According to the respondent, the appellants are defaulters under their respective loan agreements. In accordance with the Arbitration Clause contained in the respective loan agreements, the respondent has initiated Arbitration proceedings before the Sole Arbitrator. By separate orders dtd. 15/9/2020, passed under Sec. 17 of the Arbitration and Conciliation Act, the Sole Arbitrator directed the respondent to take repossession of the respective hypothecated vehicles from the respective appellants, who are the borrowers. Aggrieved by the orders dtd. 15/9/2020, passed in all the applications under Sec. 17 of the Arbitration and Conciliation Act, these appeals have been filed under Sec. 37 of the Arbitration and Conciliation Act. Since the issues raised in all these appeals are one and the same, these appeals are disposed of by means of this common judgment.

(2.) Heard Mr.S.Mukunth, learned counsel appearing for the appellants and Mr.K.Moorthy, learned counsel appearing for the respondent.

(3.) The learned counsel appearing for the appellants at the outset would submit that the impugned orders have to be set aside as the principles of Natural Justice has been violated by the Sole Arbitrator. He also drew the attention of this Court to the notices dtd. 7/3/2020, issued by the respondent to the respective appellants, calling upon them to pay the outstanding amount and also intimating the respective appellants about the appointment of Mr.R.Tamilselvan as Sole Arbitrator for deciding the dispute between the parties under their respective loan agreements. He then drew the attention of this Court to the letter dtd. 8/12/2020, issued by the Sole Arbitrator Mr.R.Tamilselvan to the respective appellants, calling upon them to appear for Arbitration on 30/12/2020 at 2.30 p.m. He then drew the attention of this Court to the impugned orders, all dtd. 15/9/2020, passed under Sec. 17 of the Arbitration and Conciliation Act, wherein, the vehicles which are the subject matter of hypothecation were directed to be repossessed by the respondent from the respective appellants by the Sole Arbitrator.