What is the forum to complaint against nbfc?
Sumit Aggarwal
(Querist) 03 July 2015
This query is : Resolved
Hello Everyone,
My client took a Housing Loan from NBFC few years back.
There are some disputes arise between Borrower & NBFC.
Borrower wants to file complaint against NBFC and get resolved the disputes as per law.
As per the agreement between Borrower & NBFC; there is an arbitration clause in case any dispute arises.
The problem is:
Arbitration clause states that the Arbitration Proceedings will commence at Mumbai.
My client/borrowe resides in Delhi and it is difficult for borrower to contest arbitration proceedings at Mumbai because the claim amount is not very high.
Which other forum my client can approach for proper adjudication.
P.s.: (i) Consumer court has no jurisdiction because loan was taken for commercial purpose & it is written also in Agreement.
(ii) Civil courts are also barred to adjudicate the suit because in other cases NBFC has taken the plea in written statement, since there is an arbitration clause present in agreement, no civil court has jurisdiction to adjudicate the suit.
(iii) Banking Ombudsman has no jurisdiction over the NBFC as per RBI Guidelines.
Please advice... its urgent.
Anand Bali Adv.
(Expert) 17 July 2015
It is advised that your client should give one SPA in favour of any body at Mumbai who can attend the Arbitration proceedings there and in case he is not satisfied with the Arbitration award he can move for appeal against it in the civil court as per the Jurisdiction of the case.
