Case Note & Summary
The judgment (or portion thereof) involves four arbitration petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996, challenging arbitral awards made by a learned arbitrator under Section 84 of the Multi-State Cooperative Societies Act, 2002. The first respondent, Kokan Mercantile Co-op. Bank Ltd., had granted various credit facilities to the first petitioner, M/s. Technica International Engineering Pvt. Ltd., in 1981, including a term loan, cash credit, overdraft, and other facilities totaling Rs. 15 lacs. The loan was secured by hypothecation of assets and personal guarantees from the guarantors. Alleging default, the bank claimed a sum of Rs. 12,52,858.86 and initiated recovery proceedings. Initially, the bank filed a dispute under Section 91 of the Maharashtra Cooperative Societies Act, 1960, before the Cooperative Court. However, during the pendency of that case, the bank was converted into a Multi-State Cooperative Bank under the Multi-State Cooperative Societies Act, 2002. Consequently, on June 18, 2002, the Cooperative Court held that it lacked jurisdiction to entertain the dispute and returned the plaint to the bank for presentation before the appropriate authority. Thereafter, on June 28, 2006, the bank filed arbitration proceedings under Section 84 of the Multi-State Act, 2002, before the appointed arbitrator, who passed awards allowing the bank's claims. The petitioners, including the borrower company, its directors, guarantors, and legal heirs, challenged those awards under Section 34 in the High Court. All four petitions were heard together by consent at the admission stage. The judgment was reserved on February 26, 2013, and pronounced on April 2, 2013, by Justice R.D. Dhanuka. The available text does not contain the court's reasoning or final decision on the petitions.
Issue of Consideration
ARBITRATION PETITION NO. 85 OF 2010
Case Details
2013 LawText (BOM) (04) 47
Arbitration Petition No. 85 of 2010 along with Arbitration Petition No. 23 of 2010, Arbitration Petition No. 1160 of 2009, Arbitration Petition No. 119 of 2010
Mr. G.S. Gidwani, Mr. Vasant Dhawan, Mr. A.H. Fernandes, Mr. Navin Tiwari, Mr. Nikhil Sakhardande, Ms. Sowmya Srikrishna, Mr. Sandeep Waghmare
M/s. Technica International Engineering Pvt. Ltd., Abdul Latif Mahmood Dadan (Deceased) through LRs, Rehana Abdul Latif Dadan, Ridhwan Abdul Latif Dadan, Fahim Abdul Latif Dadan, Saleem Abdul Latif Dadan, Rehena Abdul Latif Dadan, Ibrahim Mehmood Khan
Kokan Mercantile Co-op. Bank Ltd., Masood Mahmood Rakhe, Sofiya Masood Rakhe
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Nature of Litigation
Challenge to arbitral awards passed under Section 84 of the Multi State Cooperative Societies Act, 2002, in loan recovery proceedings
Remedy Sought
The petitioners sought to set aside the arbitral awards allowing the bank's claims
Filing Reason
The arbitrator passed awards in favour of the bank, and the petitioners alleged grounds under Section 34 of the Arbitration and Conciliation Act, 1996 to challenge them
Previous Decisions
The Cooperative Court under Maharashtra Cooperative Societies Act returned the plaint on 18-06-2002 for lack of jurisdiction after the bank became a multi-state cooperative society; the arbitrator subsequently passed awards in favour of the bank
Judgment Excerpts
By these petitions filed under section 34 of the Arbitration and Conciliation Act, 1996, the petitioners seeks to challenge the awards made by the learned arbitrator under section 84 of the Multi State Cooperative Societies Act, 2002.
The first respondent had claimed Rs.12,52,858.86 in the said proceedings.
The Cooperative Court passed an order on 18 th June, 2002 holding that the said court had no jurisdiction to try and entertain the dispute and returned the plaint to the disputant to file before appropriate authority.
Procedural History
In 1981, the first respondent bank granted credit facilities to the first petitioner; default occurred; the bank filed a dispute under Section 91 of the Maharashtra Cooperative Societies Act, 1960 before the Cooperative Court; the bank was subsequently converted into a Multi-State Cooperative Bank under the Multi State Cooperative Societies Act, 2002; on 18-06-2002, the Cooperative Court returned the plaint for want of jurisdiction; on 28-06-2006, the bank filed arbitration under Section 84 of the Multi-State Act; the arbitrator passed awards allowing the bank's claims; the petitioners filed these petitions under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the awards.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34
- Multi State Cooperative Societies Act, 2002: Section 84
- Maharashtra Cooperative Societies Act, 1960: Section 91
