MANTRAS GREEN RESOURCES LTD. Vs. CANARA BANK

JUDGEMENT

(1.) The applicant, a company incorporated under the provisions of the Companies Act, 1956 and engaged in an activity of conservation of environment at it's core so as to ensure eco-friendly plans and solutions, has approached this Court, seeking appointment of a Sole Arbitrator to adjudicate the disputes that have arisen with the respondent-Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act.

(2.) The aforesaid relief is sought in the wake of an arbitration clause comprised in the common hypothecation Agreement executed between the applicant and the respondent on 19/12/2017, where it was agreed, to refer any dispute arising in connection with the Agreement to an Arbitrator or if there is no agreement reached, then to be referred to a panel of three Arbitrators, one appointed by each party and third selected by two Arbitrators.

(3.) It is not in dispute that the applicant, in the wake of it's activity, availed facility from the respondent bank and as per the applicant, it has availed approximately INR 8.5 Crore from the respondent bank out of the total sanctioning facility of INR 20 Crore. Though the application proceed to disclose the manner in which the amount was expended, I need not delve deep into the same. The applicant has alleged that on account of numerous breaches committed by the respondent bank, it suffered a huge loss amounting to Rs.14,20,51,051.00.