SATYAVEER SINGH Vs. MAGMA FINCORP LTD.

JUDGEMENT

(1.) In this application under Sec. 34 of the Arbitration & Conciliation Act, 1996 (in short, "the Act of 1996") the petitioner, the principal borrower under a loan agreement dated October 21, 2016 (hereinafter referred to as 'the loan agreement') has challenged the award dated February 27, 2018 made by an arbitrator in Arbitration Case No. ARB/08/07/2017/C. By the impugned award, the arbitrator has directed the respondent to pay Rs.30,88,397.00, together with interest upon award at the rate of 24 per cent per annum.

(2.) The principal ground urged by the petitioner in this application is that the arbitrator proceeded with the arbitration proceeding, made and published the impugned award without any notice to itself. By an order dated July 31, 2018 the arbitrator was directed to forward all the records of the arbitral proceeding before this Court. Today, when this application is taken up for hearing, a gentleman holding himself to be the representative of the arbitrator produced an open envelope, which according to him, contained the records of the arbitral proceeding. This conduct of the arbitrator in forwarding the purported records of the arbitral proceeding in an open envelope could not be appreciated by this Court. Accordingly, this Court did not return the envelope forwarded by the arbitrator.

(3.) However, Mr. Singh, learned counsel appearing for the respondent/award-debtor, the claimant before the arbitrator produced the minutes of the proceeding held by the arbitrator on October 9, 2017, November 14, 2017 and December 15, 2017. From the said minutes it could not be found that the arbitrator had proceeded with the arbitral proceeding with any proof of the notices of hearing being received by the present petitioner. In the minutes of the meeting held on December 15, 2017 the arbitrator recorded that he had peremptorily fixed the arbitral meeting on that date. However, the minutes of the meeting dated November 14, 2017 did not record any such direction by the arbitrator.