LOOT (INDIA) PVT. LTD. Vs. RELIANCE CAPITAL LTD.

JUDGEMENT

(1.) THE petitioners in the above petitions (petitioner) took three loans from the respondent under separate loan agreements. The execution of the loan agreements are not denied. The petitioner failed to repay the loan amount. The failure to repay is also not denied. The petitioner executed a mortgage deed of certain properties which is also not denied. The mortgage has been registered with the Registrar of Companies (ROC), which aspect is relied upon by the petitioner itself and which shall be considered presently. There are certain other documents being a deed of guarantee, power of attorney, undertaking etc., which are also executed as in similar contracts of grant of loan. The respondent invoked arbitration as per the agreement between the parties under the arbitration clause in the loan agreement.

(2.) CLAUSE 17 of the mortgage loan agreement required a single Arbitrator to be appointed by the Lender (respondent herein). The petitioner has signed the aforesaid documents including the very agreement containing the arbitration clause No. 17.

(3.) THE learned Arbitrator has accepted the arbitration and consented to act as the sole Arbitrator specifying his fees and the remuneration of Arbitrator by his letter dated 10th April, 2012. Further by his letter dated 11th April, 2012 to the Lender as also the principal borrower and the guarantor under the loan agreement, being the parties to the arbitration, the Arbitrator sent copies of the statement of claim and the compilation of documents sent by the Lender's Advocates to the principal borrower and the guarantor. The learned Arbitrator called upon them to file their statement of defence along with the documents and fixed the date and venue of hearing. He specified that the proceedings would be conducted observing fundamental principles of natural justice, on the basis of documents produced by the parties and oral arguments and oral hearings. He specified the deposit of fees of arbitration also payable by both the parties equally.