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Arbitration and Mediation

Personal loan defaults

I have 4 personal loan from various bank 2 from Axis Finance after defaults they put into arbitration But I failed to attend that What will be results of arbitration award & what type of precaution I need to take As I faced cyber crime before 8 months from that day I am in troubled

( Mumbai suburban, Maharashtra )

2 months ago

Reply

Dear Client,
In case, a provision for resolving the dispute through arbitration under the Arbitration and Conciliation Act, 1996 exists in the personal loan agreement, before marking dues or loan as bad loan/NPA, the lender exhausts its course of action as stipulated in the loan agreement and send a Notice under Section 21 of the Arbitration and Conciliation Act, 1996 to the borrower who failed to repay his/her debt/dues against such loans to resolve the matter at the pre-litigation stage which is mandatory before referring the disputes for Arbitration. Section 25 of the Act deals with the failure of parties to the arbitration hearing fixed by advance notice issued under Section 24(2) to the parties. According to sub-Section (c) of Section 25 of the Act, if a party fails to appear at an oral hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and pass an arbitral award on the evidence before it. An arbitral award is final and binding upon the parties unless challenged under Section 34 of the Act. It is equivalent to a decree passed by a Civil Judge and is binding upon the parties. Section 34(3) of the Arbitration and Conciliation Act, 1996 provides that an application for setting aside an arbitral award should be made before the High Court within three months(90 days) from the date on which the party receives the arbitral award.