S.ASRITHA REDDY Vs. CHALLANI FINANCE

JUDGEMENT

(1.) This Petition is filed to set aside the Arbitral Award dated 29.10.2015 passed by the Sole Arbitrator in Arbitration Proceedings Case No.ARC No.397 of 2015.

(2.) 2. From the pleadings, it is seen that the 1st Petitioner herein borrowed a sum of Rs.15,00,000/- as loan from the 1st Respondent/Finance Company towards purchase of a new vehicle, i.e. MERCEDEZ BENZ and the 2nd Respondent stood as Guarantor to the same. Both the Petitioners have executed the Hire Purchase Agreement dated 12.11.2013 as well as the Promissory Note dated 12.11.2013 in favour of the 1st Respondent/Finance Company and they are liable to pay the said loan amount to the 1st Respondent in 25 monthly instalments, from 12.11.2013 to 12.11.2015 at Rs.75,000/- per month (Rs.75,000/- x 12), totalling Rs.18,75,000/-.

(3.) According to the 1st Respondent/Finance Company, from the date of execution of the said Hire Purchase Agreement, the Petitioners have paid only four monthly instalments to the 1st Respondent/Finance Company for Rs.3,00,000/-. Since the Petitioners defaulted in payment of loan amount, the 1st Respondent/Finance Company arrived at a sum of Rs.13,92,000/- as settlement to be paid by the Petitioners on or before 31.08.2014. But, the 1 st Petitioner, vide her letter dated 20.10.2014, mentioned the incorrect settlement amount as Rs.13,00,000/-. Thereafter, the 1st Respondent/Finance Company insisted and arrived at Rs.14,27,000/- as settlement towards the said Agreement, to be payable on or before 31.10.2014. 3