Case Note & Summary
The dispute stemmed from a Hire Purchase Agreement dated 24 April 1995 between the petitioners and the respondent for eight Honda Accord cars, accompanied by a Loan Agreement dated 13 June 1995. The respondent alleged that the petitioner no.1 defaulted on payments, leading to termination of the agreement and repossession of four vehicles, which were later sold. The petitioner no.1 filed criminal complaints against the respondent. The respondent initiated arbitration through Birla Global Finance Limited in July 2001, claiming outstanding dues and possession of remaining vehicles. The petitioners objected to the arbitrator’s jurisdiction but participated under protest. During arbitration, issues of stamp duty arose: the original hire purchase agreements were found inadequately stamped. The arbitrator directed adjudication, and upon payment of deficit duty and penalty, admitted xerox copies as evidence over the petitioners’ objection. The arbitrator allowed the petitioners to amend their written statement to allege fraud. Oral evidence was recorded from both sides. The arbitral tribunal rendered awards on 23 March 2009, modified on 22 May 2009, and an additional award on 30 November 2013, corrected on 9 January 2014. Aggrieved, the petitioners filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to set aside these awards. The factual narrative highlights the sequence of events leading to the arbitral proceedings and the evidentiary challenges faced. The court’s analysis and decision on the merits are not part of the provided judgment extract.
Issue of Consideration
ARBITRATION PETITION NO.630 OF 2009
Case Details
2016 LawText (BOM) (08) 119
ARBITRATION PETITION NO.630 OF 2009
Mr. V.K. Rambhadran, Senior Advocate i/by Ms. Pranjali Bhandari for the petitioners; Mr. J.P. Sen, Senior Advocate i/by M/s. Mulla & Mulla & Craigie Blunt Caroe for the respondent.
1. Aidek Tourism Services Private Limited, 2. Vishal Kedia, 3. Kamal Kedia
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Nature of Litigation
Arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996 filed by the award debtors to challenge the arbitral awards.
Remedy Sought
The petitioners sought setting aside of the arbitral award dated 23 March 2009 as modified by order dated 22 May 2009, the order dated 1 August 2007, and the additional award dated 30 November 2013 as corrected by order/award dated 9 January 2014.
Filing Reason
Not explicitly mentioned in the provided text; presumably due to alleged errors in the arbitral awards.
Previous Decisions
Arbitral awards dated 23 March 2009, 22 May 2009, 1 August 2007, 30 November 2013, and 9 January 2014; various interim orders by the arbitrator on pleadings, evidence, and stamp duty.
Judgment Excerpts
the parties entered into a Hire Purchase Agreement in respect of 8 Honda Accords Cars
the petitioner no.1 committed default in making payment under the said hire purchase agreement
the respondent repossessed 4 vehicles ... and sold the same and gave credit of sale proceeds thereof
The respondent vide its advocate's letter terminated the said agreement.
The petitioners have impugned the arbitral award dated 23rd March 2009 as modified by an order dated 22nd May 2009, the order dated 1st August 2007 and additional award dated 30th November 2013 as corrected by an order/award dated 9th January 2014 under Section 33 of the Arbitration Act.
the learned arbitrator allowed the said application for amendment sought by the petitioner no.1 and granted liberty to the parties to file supplementary pleadings
the said documents were admissible in evidence having been adequately stamped after recording the objection raised by the petitioners
Procedural History
On 24 April 1995, a Hire Purchase Agreement was executed for 8 Honda Accord cars, and a Loan Agreement on 13 June 1995. The petitioner defaulted. The respondent repossessed and sold 4 vehicles in May-June 2000. The petitioner filed criminal complaints. The respondent terminated the agreement on 28 July 2000. Arbitration was initiated by Birla Global Finance Limited in July 2001 before the Indian Merchants' Chamber. The petitioner objected to jurisdiction but participated. The petitioner filed written statement and counterclaim. The arbitrator allowed amendment to the written statement to allege fraud. Issues were framed. Evidence was recorded. Original agreements were found inadequately stamped; upon adjudication and payment of deficit duty and penalty, the arbitrator admitted xerox copies as evidence on 29 November 2007. The arbitral tribunal passed awards in 2009 and 2013. The petitioner filed this Section 34 petition challenging those awards.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 34, 33
- Code of Criminal Procedure, 1973: 156(3)
