NITHYAKALYANI TEXTILES LTD Vs. SUNDARAM FINANCE LTD

JUDGEMENT

(1.) CHALLENGE is made to an order of the learned single Judge of this Court dated 09.06.2008 made in O.P.No,283 of 2004, whereby an arbitral award sought to be set aside, was dismissed.

(2.) THE appeal came to be filed in the following circumstances: A lease agreement was entered into between the 1st respondent in the original petition and the petitioner on 21.11.1997 in respect of a 1997 Model IMP-Spinning machine and the lease purchase amount of Rs.98,14,345/- was payable in 48 monthly instalments. It commenced on 20th March, 1998 and it would end on 19th March 2002. THE petitioner made 25 instalments and thereafter, there was a default. Under such circumstances, the 1st respondent invoked the arbitration clause and appointed the 2nd respondent as sole Arbitrator. THE sudden downfall in the textile industry, ruined the petitioner's business and hence in the year 2000, the petitioner informed the 1st respondent to take possession of the machinery and effect sale of the same in order to recover the balance amount payable at that time. THE Arbitrator passed an award on 17.03.2004, directing the petitioner to pay a sum of Rs.68,27,071/- along with interest at 18% per annum and also with costs. Aggrieved over the award, the petitioner has filed the instant application, which was contested by the 1st respondent, and the learned single Judge took a view that the contention put forth by the petitioner's side did not carry any merit and hence, confirmed the award. Under such circumstances, the appeal has been taken before this Court.

(3.) THERE is no representation on the respondents side.