SOLOMAN PAPPACHAN Vs. KOTAK MAHINDRA PRIME LTD

JUDGEMENT

(1.) The instant appeals have been filed by the Appellant under Section 37 of the Arbitration and Conciliation Act against the order dated 25.01.2017 passed by the learned Single Judge under Section 34 of the Arbitration and Conciliation Act (in short "the Arbitration Act").

(2.) The Appellant availed loan for the purchase of a vehicle from the first Respondent Company which is a non-banking financial institution. The Appellant availed a loan under a loan agreement dated 18.07.2007 entered into with the first Respondent. The loan amount of Rs. 8,92,000/- was repayable by the Appellant to the first Respondent in 48 monthly instalments of Rs. 24,887/- each commencing from 05.02007 and ending on 05.01.2011. According to the Appellant, post dated cheques were issued in favour of the first Respondent towards the payment of the monthly instalments.

(3.) Admittedly, the Appellant committed default in the payment of the monthly instalments to the first Respondent. According to the Appellant, the reason for committing default was that the vehicle developed snags frequently because of its defective quality. In view of the frequent repairs on account of its defect, the Appellant had to redeliver the vehicle back to the Dealer either for complete repair or for replacement on 10.07.2007.