Comparison between drt act and arbitration act for recovery
Ajay
(Querist) 07 August 2013
This query is : Resolved
sir can we challenge to any bank or nbfc if they resort to arbitration act for recovery instead of DRT act, arbitration act is old and drt act is new like same way civil act was vanish after drt act for recovery hence similar way arbitration act should not work after introduction of drt act
prabhakar singh
(Expert) 07 August 2013
No !You can not.
Arbitration agreements are prerogative of parties which one invokes the other has to submit it.Among several reliefs choice lies
with claimant to choose which remedy to be invoked?But when there is arbitration agreement flouting which claimant visit other forums (may be DRT)the defendant has right to get DRT case stayed in view of the fact that there exists arbitration agreement
but not vice versa.
prabhakar singh
(Expert) 07 August 2013
Is it clear now?
i think you are same Ajay who PMed me.
Ajay
(Querist) 07 August 2013
yes sir i am looking some reasonable laywer in delhi having arbitration as well as drt act knowledge
Ajay
(Querist) 07 August 2013
if there is a agreement signed by borrower for arbitration because borrower has to sign all document when he avail loan even if those law are not applicable in India because blank forms signature are taken
now all loan agreement and sanction done in Bangalore but NBFC has filed arbitration case in delhi,can we challenge arbitration case and insist should be recover through DRT act as it is newer than arbitration act like civil jurisdiction is banned after drt act?
prabhakar singh
(Expert) 07 August 2013
I am so sorry! i am of no help to you as the case is ion Delhi and i am in Azamgarh!
Ajay
(Querist) 07 August 2013
ok sir that is why i ask you in pvt
R.K Nanda
(Expert) 07 August 2013
both acts are separate.
Ajay
(Querist) 07 August 2013
http://indiankanoon.org/doc/170240238/
Please check above judgement in which strong argument gone to bring case in drt from arbitration,plz read good information for advocate who dealing with bank related matter
prabhakar singh
(Expert) 07 August 2013
Judgements are not my father and mother,my logics are,who can compel courts to view as i foresee.
Ajay
(Querist) 07 August 2013
lower court has to accept higher court judgement what i feel and know
Ajay
(Querist) 07 August 2013
sir can borrower challenge arbitration agreement for recovery of money and force NBFC to resort to DRT act or not,i am not an advocate so please explain in simple language as my case has been refer to arbitration by NBFC to haras me as only 2 instalment is pending and i was ready to pay but they want more than 75000 as other charges to close loan
Rajendra K Goyal
(Expert) 08 August 2013
Arbitration clause has been signed by you. It is doubted that any challenge at this stage would be fruitful.
You are ready to pay two installments, in the litigation you may have to spend money and time which may not be much less than balance left. Even after all this litigation it is not confirm the expenses claimed would be waived as the matter would be decided on merits. Try to settle the matter amicably if possible.
Ajay
(Querist) 08 August 2013
it was agreed with Indiabulls representative that they will take principle and close the loan and they ask me to pay one instalment in april and they said after getting this instalment they will give no due after taking principle only but they file a arbitration case even during talk were going to close the loan,now they have filed arbitration case so we have to fight as no option.India bulls will also have to spend money when borrower is ready to close loan,
INDIABULLS IS ONE OF THE WORST NBFC IN INDIA
V R SHROFF
(Expert) 08 August 2013
For Sucessful Recovery of money financed or lended, Financiers adopt effective means at the cost of borrower.
There are many short cuts/ loopholes, and fast awards, that results into Decree in Regular Darkhast[ RD Cases] to recover money thru Court Warrant.[sd Civil court]
All are mixed up/ in collusion, and majority of Pvt (Non Bank) Money Lenders/ Financial Inst use Arbitration, and method adopted are far away from Natural Justice.
Ajay
(Querist) 08 August 2013
SO WHAT IS SOLUTION AGAINST METHOD ADOPTED BY NBFC FOR RECOVERY FAR AWAY FROM NATURAL JUSTICE,WHY OUR COURT ARE MERE SPECTATOR AND ALLOW THEM TO MISUSE LAW WITH CONNIVANCE.
SOME ONE SHOULD FIGHT TO TEACH THEM ALSO THAT THESE METHOD MAY DELAY RECOVERY ALSO
Rajendra K Goyal
(Expert) 08 August 2013
Court decides the matter on merits when the matter is presented before it. Almost All the courts in India are overburden. It is the politicians and parliament who take cognizance in such matter and enact laws.
V R SHROFF
(Expert) 08 August 2013
Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. ...
Why go to them, when BANKS ARE AT EVERY CORNER??
Ajay
(Querist) 08 August 2013
when you start new business,no schedule bank entertain you before 3 year of balance sheet in that circumstances peaple are compelled to go their as no other option and also new experience with them as never faced such situation before because all schedule bank behave properly and systematically
V R SHROFF
(Expert) 08 August 2013
I Agree, , And as risk for NBFC are higher than Scheduled Bank, and their Recovery Fails many a time, it is but natural, they adopt Arbitration Technics.
Never post Notice by Courier/ Post, and proves before Arbitrator, the notice was posted.
80% of Awards passed in absence of debtor,
Cases filed at Gurgaon, and money paid in Mumbai!!.
No bail, no adv avl, as they need Local Advocate, Local Bail for person residing in Mumbai.
Ultimately settle the matter with whatever they get.
Bal Loan 3400/-Charged with repayable 35000/- includes interest at higher rate for 6 year, arbitration & Legal cost,
Pay them 10 times or in Jail..
Despite all that INDIA BULL NOT IN STRONG FINANCIAL POSITION, AS MONEY DIVERTED TO BUILDERS WITH MORE BLACK THAN WHITE TRANSACTIONS!!
IT IS PVT BUSINESS AFTER ALL!!
Ajay
(Querist) 08 August 2013
can we challenge that recovery should be as per DRT act not as per arbitration act like earlier recovery was done as per civil procedure after coming to drt act civil procedure banned same way arbitration act is old,can we challenge that recovery should be as per drt act
we have already engage an advocate in delhi and send him paper and we will not take any legal matter lightly
Saurendra Rautray
(Expert) 18 October 2014
Dear Mr Ajay.
If there was no Arbitration agreement then it shall go to DRT but when there is arbitration Clause which has been accepted, agreed and signed by both the parties then it shall go to Arbitration. You cannot challenge the same in court of law.
Saurendra Rautray
Rautray& Co
HEAD OFFICE :Delhi : B3/18,Vasant-Vihar, New Delhi - 110 057
www.rautray.com
07042664338
