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Arbitration and Mediation

Received Arbitration Directions from Presolv360 via Email

Dear Sir/Madam, My self Arun, I have a multiple loans and have one Personal Loan with Piramal Capital, Today I Received this Email from Presolv360 , with the below Matter, Requesting you to Kindly Advice. Subject - URGENT: Arbitrator's Directions URGENT: Arbitrator's Directions BEFORE THE TRIBUNAL OF SUBRAMANI VENKATARAMANSOLE ARBITRATORARBITRATION CASE ID: A134038 | REF ID: PSBPL0039986 Piramal Capital & Housing Finance Ltd. ...Claimant Vs. Manjunath Arun ...Respondent(s) Order Sheet Records indicate that the Statement of Claim was filed on 16-10-2024. The Respondent(s) were provided time to file the Statement of Defence. In the interest of justice, the Respondent(s) were reminded and granted further opportunity and additional time to file the Statement of Defence. Despite participation, the Respondent(s) failed to file the Statement of Defence, or any documents / other evidence in spite of sufficient notice, reminders and directions. Accordingly, the arbitration proceedings shall continue without treating the failure in itself as an admission of the allegations made in the Statement of Claim and the right of the Respondent(s) is treated as having been forfeited. The arbitration proceedings are closed and the matter is reserved for award

( Bangalore, Karnataka )

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 a 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 to resolve the matter at the pre-litigation stage which is mandatory before referring the disputes to Arbitration. It appears from the content that despite notices served by the Bank under Section 21 of the Act, you failed to appear in the arbitration proceedings on multiple occasions and as a result, the arbitrator has passed an exparte order against the defaulted borrower. An arbitration award once passed by the arbitrator is final and binding upon the parties unless challenged under Section 34 of the Arbitration and Conciliation Act, 1996. It is equivalent to a decree passed by a Civil Judge and is binding upon the parties. The enforcement procedure and execution decrees of an arbitral award in India are governed as per the provision of the Arbitration and Conciliation Act, 1996. The time-limit for challenging an award under Section 34 of the Arbitration Act is absolute and no delay beyond 30 days from the prescribed period of 90 days can be condoned by any Court. Once the time for making an application to set aside the arbitral award under section 34 has expired or such an application has been refused, the award becomes enforceable and binding on 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. So, when you receive the arbitral award in the absence of the date or receipt of the award/order (date not mentioned in the query), it cannot be ascertained whether your appeal against the said order is now barred by the limitation or not for challenging the award under Section 34 of the Act. You may consult with an Advocate to access your right to appeal and navigate the issue in the right way.