INDUSIND BANK LIMITED Vs. HARJIT SINGH

JUDGEMENT

(1.) Defendant no. 1 Bank has filed this revision petition under Article 227 of the Constitution of India impugning order dated 20.01.2011 (Annexure P-1), passed by the trial court, thereby dismissing application (Annexure P-2) filed by defendant no. 1 under Section 8 of the Arbitration and Conciliation Act, 1996 (in short the Act).

(2.) Suit has been filed by respondent no. 1 plaintiff against petitioner and proforma respondents no. 3 and 4 as defendants no. 1 to 3 and against respondent no. 2 as defendant no. 4. Defendant no. 4 had taken loan from defendant no. 1 Bank for finance of a truck, for which the plaintiff stood guarantor. Plaintiff has filed suit seeking declaration that the loan agreement dated 08.11.2006 (Annexure P-3) stands terminated and the plaintiff stands exonerated from the said agreement. Plaintiff also claimed injunction restraining the defendants from taking any action on the basis of said loan agreement.

(3.) Defendant no. 1, in its application (Annexure P-2), alleged that in view of arbitration clause in paragraph 23 of the loan agreement (Annexure P-3), the matter has to be referred to Arbitrator and accordingly, defendant no. 1 has appointed defendant no. 3 as sole Arbitrator.