CARNET ELIAS FERNANDES Vs. ADITYA BIRLA FINANCE LTD

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration and Conciliation Act,1996 (for short "the Act") challenges an award dated 5 October, 2016 passed by the learned sole arbitrator adjudicating the disputes between the parties which had arisen under the loan facility agreement dated 9 October, 2012. By the impugned award, the learned sole arbitrator has held that the petitioners are jointly and severally liable to pay to the respondent-claimant an amount of Rs. 23,65, 07,643/- for the default of the petitioners to make repayment of the outstanding loan amount under the said loan agreement. The arbitral award further directs the petitioners to pay to the respondent interest at the rate of 12.5% per annum from 1 April, 2015 till the date of realization of the dues. The learned Arbitrator also has awarded cost of the arbitration proceeding at Rs.14,65,000/-.

(2.) The relevant facts are:

(3.) The petitioners became irregular in the payment of the installments as also defaulted in repayment of the loan installments. Also the post dated cheques issued by the petitioners towards the installments of the loan were dishonoured when presented for payment. The respondent accordingly issued a notice dated 26 November, 2014 under Section 138 of the Negotiable Instruments Act, calling upon the petitioners to pay the amounts under the dishonoured cheques. The respondent time and again made demands for payment of the outstanding amounts, however, despite all the efforts, the respondent was not successful in recovering any amounts.