Implication of arbitration proceeding
Shivesh Tripathi
(Querist) 12 January 2016
This query is : Resolved
there is a SPV which has concession agreement with NHAI, this SPV took loan from a bank to complete the project. subsequently some dispute arose between the SPV and NHAI and as per agreement they went for arbitration. so my question is will there be any implication/risk of this ongoing arbitration proceeding on the rights and liabilities of lender from which the SPV took the loan.
DR.VEDULA GOPINATH
(Expert) 14 January 2016
sir
I am not clear about your question.
When arbitration is commenced it will be proceeded under the Arbitration law (as amended).
Subject to disputed matter (reference) the rights and liabilities of Bank holds good as per the loan agreement.
Please do send me the notice of arbitration for my study and further advice to you.
cs Dr Vedula Gopinath Arbitrator
Rajendra K Goyal
(Expert) 14 January 2016
Arbitration proceedings and Bank loan process both are separate and not interrelated.
Anirudh
(Expert) 14 January 2016
Arbitration proceedings between SPV and NHAI has nothing to do with the rights and liabilities of lender (Bank) vis-a-vis the SPV.
krishna mohan
(Expert) 19 January 2016
If dispute before Arbitration is for contractual dispute and work is going on pending resolving dispute as per terms of contract and prompt repayment as per terms of loan, there many not be any risk. You are seeking clarity as a financier or on behalf of one of the party to dispute?
