Arbitration clause in a vehicle in loan cum hypothetication agreement
Kunal Sarkar
(Querist) 18 June 2012
This query is : Resolved
plaintiff obtained a loan from private finance company and return the loan amount along with interest as per their Repayment Schedule and asked for clearance certificate. After two months the finance company issued a final notice demanding additional amount of Rs. 80,000/- with in 10 days in default they Repossessed the vehicle. Then the plaintiff through his Advocate sent a notice requesting them for furnishing detailed statement of Rs. 80,000/- and amicable settlement, but the finance company did not reply the said notice. Hence the suit.
The finance company after appearing filed a petition under Order VII, Rule 11, Read with Section 151 for rejection of the plaint on the ground that the of suit is barred by law as per Section 8(i) of the Arbitration and Conciliation Act, 1996, as the loan-cum-hypothecation enumerated Arbitration Clause.
my query is that,
1. Whether each agreement contains Arbitration Clause bar to file civil suit ?
2. Whether in this particular suit the provision of Order VII, Rule 11 is attract ted ?
3. Is there is any exception if this law ?
4. Whether after repayment of loan as per Repayment Schedule the loan agreement is in force ?
5. Whether the notice serve by the Advocate to the finance company is not sufficient to invoke the Arbitration clause ?
ajay sethi
(Expert) 18 June 2012
you ahve asked company for detailed staement of account . the company was bound to furnish detailed particulars as to how rs 80,000 has been arrived at
if agreement contains an arbitraton clause it is binding on parties . court will refer dspute to arbitration .
the company will have to prove how sum of rs 80,000 is paybale whn entire loan amount is repaid .
ajay sethi
(Expert) 18 June 2012
you ahve asked company for detailed staement of account . the company was bound to furnish detailed particulars as to how rs 80,000 has been arrived at
if agreement contains an arbitraton clause it is binding on parties . court will refer dspute to arbitration .
the company will have to prove how sum of rs 80,000 is paybale whn entire loan amount is repaid .
ajay sethi
(Expert) 18 June 2012
you ahve asked company for detailed staement of account . the company was bound to furnish detailed particulars as to how rs 80,000 has been arrived at
if agreement contains an arbitraton clause it is binding on parties . court will refer dspute to arbitration .
the company will have to prove how sum of Rs 80,000 is payable when entire loan amount is repaid .
Kunal Sarkar
(Querist) 22 June 2012
The plaintiff before filing the suit given a letter through his Advocate to the finance company regarding final settlement of the disputes amicably but they did not reply.
The said letter of amicable settlement whether comes within the preview any type of Arbitration ?
Whether the Plaintiff argued basing upon the said letter, that they tried for settlement by appointing their Advocate as Arbitrator ?
Whether in Arbitration Act there are any exceptional provision against the bar to file civil suit ?
