K. SARAIAH Vs. M/S. SUNDARAM FINANCE LTD.

JUDGEMENT

(1.) Heard Mr. T.L. Thirumalaisamy, learned counsel appearing for the petitioner and Mr. M.S. Sampath, learned counsel appearing for the 1st respondent.

(2.) This application has been filed under section 34 of the Arbitration and Conciliation Act, 1996, challenging the Award passed by the Arbitrator dated 05.05.2016. The matter arises out of a financial transaction between the petitioner and the 1st respondent - Finance Company. The petitioner approached the 1st respondent for extension of loan facility for purchase of TATA 2515, 2005 Model vehicle. The 1st respondent entered into a Loan Agreement dated 25.08.2012 and sanctioned a sum of Rs. 6,33,517/-, repayable in 35 installments and the 1st installment commenced on 03.10.2012 and the last installment ended on 03.08.2015. The hypothecation endorsement was also recorded in the Registration Certificate of the said vehicle. It is not in dispute that the petitioner and respondents 2 and 3 committed default in paying the loan amount, as a result of which the vehicle was re-possessed on 15.06.2013. After affording enough opportunity to the petitioner and giving paper publication, the vehicle was sold in as is where is condition on 13.03.2012, for a sum of Rs. 2,50,000/-, which according to the 1st respondent is based on the offers received by them. For the balance amount payable towards the loan amount of Rs. 3,50,948.87p and other expenses, the 1st respondent filed a claim statement before the Arbitrator.

(3.) The Arbitrator, by the impugned Award, has awarded a sum of Rs. 3,50,948.87p with interest at the rate of 18% per annum from 13.12.2013 till the date of realization with Rs. 5,500/- being the cost of arbitration proceedings, made up Rs. 4,000/- as the remuneration for the Arbitrator and Rs. 1,500/- as expenses of the Arbitrator.