Arbitration Petition No. 919 of 2015. Case: Sea Eagle Dredging Marine Infrastructure Private Limited Vs Reliance Capital Limited and Ors.. High Court of Bombay (India)
| Case Number | Arbitration Petition No. 919 of 2015 |
| Counsel | For Appellant: Shilpa Kapil, Adv. and For Respondents: Alpana Ghone i/b Ajay Misar & Co. |
| Judges | R. D. Dhanuka, J. |
| Issue | Arbitration and Conciliation Act, 1996 - Sections 12, 13, 34 |
| Judgement Date | April 20, 2016 |
| Court | High Court of Bombay (India) |
Judgment:
R. D. Dhanuka, J.
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By this petition filed under section 34 of the Arbitration & Conciliation Act, 1996 (for short "the said Act"), the petitioner has impugned the arbitral award dated 26th December, 2014 directing the petitioner to pay a sum of Rs. 2,03,22,491.08 ps. as per the foreclosure statement together with further interest at the rate of 18% p.a. from 5th July, 2014 till payment or realization with costs fixed at Rs. 7500/-.
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The respondent No. 1 vide their letter dated 1st September, 2011 informed the petitioner that an amount of Rs. 1,92,00,000/- was sanctioned as and by way of loan to the petitioner. The respondent No. 1 thereafter disbursed an amount of Rs. 1,73,34,075/- to the petitioner along with letter dated 1st September, 2011. It is the case of the petitioner that during the period between 30th September, 2011 and 30th April, 2013, the petitioner made a payment of Rs. 38,58,057/- to the respondent No. 1.
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It was the case of the respondent No. 1 that since the petitioner committed default in making repayment of the loan, the respondent No. 1 vide their advocate's notice dated 19th February, 2013 terminated the loan agreement. It is the case of the petitioner that even after such termination of the loan agreement vide their letter dated 19th February, 2013, the respondent No. 1 continued to accept the payment of installment right upto November, 2014.
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The respondent No. 1 appointed the learned arbitrator by a notice dated 14th July, 2014 by invoking arbitration agreement recorded in clause 17 of the loan agreement. The learned arbitrator thereafter issued various notices from time to time to both the parties to remain present. The respondent No. 1 filed a statement of claim before the learned arbitrator pursuant to the directions issued by the learned arbitrator inter-alia claiming an amount of Rs. 2,03,22,419.08 p.s. with interest at the rate of 18% p.a. as per the foreclosure statement annexed to the statement of claim. The petitioner did not file any written statement before the learned arbitrator. The learned arbitrator made an award on 13th January, 2015 directing the petitioner to pay Rs. 2,03,22,419.08 ps. with interest and cost. This award of the learned arbitrator is impugned in this arbitration petition filed under section 34 of the Arbitration Act.
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Learned counsel appearing for the petitioner submits that the impugned award is dated 26th December, 2014, whereas the same was stamped on 8th January, 2015. She invited my attention to a letter dated 13th January, 2015 addressed by the learned arbitrator and submits that as the award was stamped on 8th January, 2015, the award could not have been dated on 26th December, 2014.
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The next submission of the learned counsel for the petitioner is that the respondent No. 1 had suppressed before the learned arbitrator that there was no termination of the loan agreement. She submits that the petitioner never received a copy of the said so called termination letter. It is submitted that though the respondent No. 1 had relied upon a Deed of Equitable Mortgage in the statement of claim, the same was not annexed to the statement of claim before the learned arbitrator. She submits that though the petitioner had made payment till August, 2014 and the last payment was received by the respondent No. 1 in the month of November, 2014, the respondent No. 1 had not disclosed this fact before the learned arbitrator. She submits that the respondent No. 1 did not disclose all true and correct facts before the learned arbitrator...
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