HARMINDER SINGH MODI AND OTHERS Vs. M/S. CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED AND OTHERS

JUDGEMENT

(1.) The instant petition has been filed under section 34 of the Arbitration and Conciliation Act, 1996 challenging the Arbitral Award dated 05.09.2013 passed against the petitioners.

(2.) The brief facts leading to the filing of the instant petition are as follows: The petitioners entered into a loan agreement dated 31.05.2008 with the first respondent. Under the loan agreement, the petitioners availed loan to the tune of Rs. 5,00,000/- which will have to be paid vide 47 monthly installments, commencing from 01.07.2008 to 01.05.2012. According to the first respondent, the petitioner had committed default in the repayment of loan. In view of the dispute between the parties, the first respondent referred the dispute to the arbitration by appointing the second respondent as sole arbitrator in accordance with the arbitration clause containing in the loan agreement. The sole arbitrator acted upon the reference and after issuing notice to the parties to the dispute and after considering materials available on record, passed an Award in favour of the first respondent directing the petitioner to pay the first respondent a sum of Rs. 2,87,980/- together with interest at the rate of 18% p.a. from 28.01.2011 till the date of realisation along with the cost of the proceedings.

(3.) Aggrieved by the Arbitral Award dated 05.09.2013, the instant petition has been filed by the petitioners.