Arbitration proceeding
Kvijay12345
(Querist) 29 April 2015
This query is : Resolved
Consumer had brought many discrepancies found in the loan documents into the notice of the NBFC.There was a dispute over those loan documents including the loan agreement. Instead of solving the dispute, the NBFC got the arbitration award passed in its favor without the knowledge to the consumer and towed away his vehicle forcibly without giving any intimation to him or local police station and also without giving the copy of this arbitration award to the consumer. The consumer therefore moved to the District Consumer Forum seeking for the compensation.Now the NBFC have filed their say stating they have possesed the vehicle with the help of that arbitration award.I have heard that such disputed loan documents can not be utilised for arbitration proceedings before solving the dispute and an award based on these disputed papers is invalid.Can the disputed loan documents including the loan agreement be utilised for arbitration proceedings and the arbitration award be passed based on those disputed loan documents? Is such an arbitration award passed based on the disputed loan documents is valid and can the vehicle financed be towed away with the help of such an arbitration award by the NBFC without going through Execution proceeding in the civil court to repossess the vehicle? under which section of the The Arbitration and Conciliation Act, 1996,the award passed on the disputed papers is invalid?
Kuummaar AS
(Expert) 29 April 2015
It appears strange that award was got passed by NBFC without the knowledge of the other party about Arbitration proceedings
Guest
(Expert) 29 April 2015
Mr. K Vijay,
It is quite hard to believe if the consumer was not aware about the arbitration and its proceedings.
Background of the case is quite insufficient about arbitration proceedings, including whether the consumer had received any intimation about appoinment of the arbitrators and notice for arbitrary hearings or not for the purpose of arriving at some purposeful opinion.
Further, the fact is also missing about the discrepancies/ dispute on loan documents as to when the dispute was raised and also why at the later stage, not before signing the documents for taking loan?
Dr J C Vashista
(Expert) 30 April 2015
Hypothetical and unbelievable query by a regular author.
Devajyoti Barman
(Expert) 30 April 2015
who are you and how are you connected to this query?
P. Venu
(Expert) 30 April 2015
Appears to be a 'hide and seek' query.
Anyhow, even if the Arbitrator had decided the matter ex-parte, execution requires the due process of law.
Rajendra K Goyal
(Expert) 30 April 2015
The consumer never challenged the discrepancy and got orders for non enforce ability of the loan documents from the court before arbitration.
Arbitration was not represented by the consumer and arbitrator awarded in favor of the NBFC. If it was not challenged in accordance with the law, NBFC was justified in executing the award in its favor.
The consumer should not have signed the discrepant documents at initial stage and should have refused to take loan. He is trying to take benefit of his own wrongs.
T. Kalaiselvan, Advocate
(Expert) 04 May 2015
The atrocities referred herein are commonly prevalent in the NBFCs who have scant respect for law. Many innocent people have been meted out with such treatments. The solution is to prefer appeal before the appellate authority and also lodge a complaint with the police for forcibly towing away the vehicle. The NBFC cannot take away the vehicle without following the procedures for it.
