Ashish Khandelwal (Advocate) 29 January 2018

Chalange Arbitration

1.One private finance company has put my name in place of guarantor and sending me notice to repay the car loan taken by some un known person. 2. When I came to know, I reply to the advocate of company that I never give any gurantee to the said person. 3. Meanwhile I received a notice from finance company about appointment of an arbitrator I replied that I am not a party as I never give any document or my concern for any loan or guarantee. but just after 5 to 7 days I received a letter from arbitrator that he put hearing of above case at *th feb and ask to appear me in personal or trough counsellor. If I not appear before him he will pass an ex party order. My questions are 1. Should I appear before arbitrator even I am not a party as I never give any gurantee of above said loan? 2. If arbitrator pass any order against me than how and where can I challenge his order? 3. Can I deny to appear before him? 4. What action can I take against finance company and borrower also? 5. How can I take stay against arbitration procedure? 6. any other remmedy? 7. What I have to do now?

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4 Replies

Adv. SIddharth Jain (Advocate ) 29 January 2018

If you fail to participate in arbitration without sufficient cause, the arbitrator may proceed ex parte against you.

You can deny the entire contents of notice / reply suitably. You will still need to contest the claim denying the amount due.
For further queries, email me at isidjain1@gmail.com

Kumar Doab (FIN) 29 January 2018

The lender is under obligation to provide copies of loan application, loan approval, loan agreement, and any other document showing your consent/signature/KYC docs as Guarantor…..

IT seems that you have although denied but have not asked for any document and verification report…per SOP of said company e.g; OSV after verifying copies with originals, physical verification if any etc etc……..

You are within your rights to get these………..

The said company has not replied to you as per your query.

Is said company NBFC?