BEENA VINOD Vs. SUNDARAM FINANCE LIMITED

JUDGEMENT

(1.) This original petition has been filed by the petitioners to set aside the award dtd. 23/10/2019 passed by the learned Arbitrator in Arbitration Case No.KB/SF/234 of 2018.

(2.) The case of the petitioners is that the respondent is a chit fund namely M/s.Sundaram Finance Ltd. The petitioners had availed loan from the respondent to the tune of Rs.13,23,805.00 for the purpose of purchasing Mahindra Optima Model 2016 vide Chassis No.MA1GD2CHHG3K17473, Engine No.CHG4J95562 with loan Agreement No.L019600419 dtd. 28/10/2016 which was repayable in 60 monthly instalments, commencing from 10/12/2016 and ending on 28/10/2021. The petitioners had paid upto 18 instalments i.e. till July 2018 and thereafter, there was sever floods caused by torrential rains during August 2018 which, severely affected the residential and business places of the petitioners at Kerala. Therefore, the petitioners shifted to some other place. Further, the petitioners had incurred sever loss in business and the vehicle had also suffered sever damages due to the floods. Since the petitioners did not make further payment, the respondent invoked arbitration clause in the loan agreement and referred to the arbitration proceedings. The sole arbitrator also passed an award dtd. 23/10/2019 directing the petitioners to pay a sum of Rs.8,39,449.81 jointly and severally with further interest of 18% per annum from 27/10/2018 till the date of realization with cost to the respondent. Challenging the said award, now the petitioners have filed the present Original Petition under Sec. 34(2) of the Arbitration and Conciliation Act.

(3.) The main grounds taken by the petitioners are that (a) the notice was not duly served to them (b) The arbitral award directing the petitioners to pay the interest at the rate of 18% per annum is totally unreasonable and against the provisions of Sec. 31(7)(a)(b) of the Arbitration and Conciliation Act 1996, (c) The claim petition along with the copies of the documents including the copy of the loan agreement was not furnished to the petitioners. Further, the true copy of the award which was sent through post to the petitioners on 23/10/2019, was received only on 3/11/2019 and (d) The Arbitral Tribunal without issuance of proper notice, had also ordered attachment of the second petitioner's property and thereby, the Arbitral Tribunal have violated the principles of natural justice and have not provided fair opportunity to present the case of the petitioners.