KARUPPIAH MAHALINGAM Vs. M/S. KOTAK MAHINDRA BANK LIMITED, A BANKING COMPANY WITHIN THE MEANING OF SECTION 5(C) OF THE BANKING REGULATION ACT, 1949(10 OF 1949) AND INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT 27 BKC, C27, G BLOCK, BANDRA

JUDGEMENT

(1.) The arbitration petition challenges the Award of the sole Arbitrator dated 24 March, 2015 wherein the learned Arbitrator has directed the Petitioners to pay an amount of Rs.2,47,04,399.00 with the interest at the rate of 13% p.a. from 18 Dec., 2014 till realization.

(2.) The Petitioners had availed a loan against the mortgaged property from the Respondent Financial Company. The Petitioners committed default in re-payment of loan. An arbitrator was appointed. The Respondent filed the claim statement. Notices were issued to the Petitioners, but they did not remain present. After giving adequate opportunity and after considering the material produced on record, the Arbitrator passed an Award on 24 March, 2015.

(3.) Arbitration petition was filed on 17 Aug., 2015. A Notice of Motion No.1901 of 2015 was taken out by the Petitioners on 28 Oct., 2015 seeking to condone of delay in filing the arbitration petition. The ground taken was the medical treatment of the wife of Applicant No.1. The Petitioners thereafter took out a chamber summons bearing Chamber Summons No.1575 of 2016 to amend the arbitration petition to place on record that on 27 July, 2015 the Petitioners received a copy of the corrigendum to the Award dated 13 July, 2015 and in view of this position, the arbitration petition was within the period of limitation. By order dated 15 Nov., 2016, the chamber summons was allowed and amendment was permitted to be carried out, keeping the rights and contentions of the parties open.