PARESH PRAKASH PAVETEKAR Vs. PHOENIX ARC PVT LTD

JUDGEMENT

(1.) Heard learned Counsel for the parties.

(2.) This petition challenges an award passed by a sole arbitrator in a reference arising out of a loan agreement.

(3.) The Petitioner had taken a loan from the Respondent. There is no dispute about the loan. The loan was repayable in equated monthly installments. The Petitioner had committed a default in payment of installment due on 5 Nov. 2018. There is no dispute that the default did occur. The case of the Petitioner, who was the Respondent before the arbitral tribunal, was that upon happening of this default, the Respondent (original claimant) was contractually bound to recall the entire loan together with interest and overdue charges. It is submitted that on the date of the first default, the Respondent's cause of action arose and within three years of such accrual, the Respondent had to invoke the arbitration agreement, so as to be within limitation. It is submitted that since that was not done, the reference was bared by limitation and the arbitrator was accordingly bound to reject the claim, since there was neither acknowledgment of liability nor part payment within three years prior to invocation of the arbitration agreement.