DECCAN CHRONICLE HOLDINGS LIMITED Vs. L&T FINANCE LIMITED

JUDGEMENT

(1.) ADMIT . Learned counsel for the Respondents waive service. The appeals are taken up for hearing and final disposal, by consent and on the request of the learned counsel. Both the appeals arise out of a judgment and order of a learned Single Judge dated 5 February 2013 on two petitions which were filed by Tata Capital Financial Services Limited and L & T Finance Limited against the Appellant. The Petitioners before the learned Single Judge under Section 9 of the Arbitration and Conciliation Act, 1996 are the Respondents to the appeals.

(2.) THE claim of Tata Capital Financial Services Limited ('Tata Capital') is Rs. 100.86 crores on which interest would be liable to be paid. The dues of L & T Finance Limited ('L & T Finance') are Rs. 25.02 crores together with interest. These dues arise out of the credit facilities extended to the Appellant. Tata Capital has invoked the arbitration agreement between the parties and has submitted a claim in the arbitration, which is pending adjudication. L & T Finance has an award dated 15 March 2013 of a sole arbitrator allowing its claim in the amount of Rs. 25.02 crores together with interest at the rate of 15% p.a. Although the creditors have mortgages in their favour, the claim in the arbitral proceedings has been restricted to a money claim. No relief for the enforcement of the mortgaged security has been sought in arbitration.

(3.) THE following submissions have been urged by counsel in the appeals, while assailing the order of the learned Single Judge: