jaiprakash 07 August 2017

Arbitration award on personal loan

Hello all seasoned advocates, I had taken personal loan from a private bank in the year 2007 and paid monthly installments for about 10 months and after that I could no repay due to recession, parents hospitalization etc. In the year 2012, the bank had approached Arbitration and obtained ex-parte award. I did not get any notice or intimation from Arbitration to attend. Even after, award is passed, I have not received the award copy. Now bank has sent a legal notice to me saying that they got award and I have to pay Rs. 6 lakhs with 36% interest or else they will attach my moveable and immovable property. Now my question is what are my defence? Can bank enforce the award after lapse of 5 years? What are the remedies available for me? Kindly help me to survive.

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9 Replies

Vinod shah (legal assistance for victims of system. findjobs02@gmail.com) 07 August 2017

First you get the copy of the award from the bank or the arbitrator.

It can be challanged in appeal and it will be set aside.

You can get the stay after getting oopy of the award and filing appeal.

(Guest)

The bank would have sent you notice for arbitration on your last known address.

Anyway, get a copy of the arbitration award and consult some local lawyer after getting that examined thoroughly about the circumstances under which the award was given ex-parte.

Advocate Bhartesh goyal (advocate) 07 August 2017

Get the copy of Award from Arbitrator and file objections u/s 34 of Arbitration and Conciliation Act 1996.

Bhawani Mahapatra (Law Officer) 08 August 2017

Dear JP

Ask the bank to provide you a copy of Award in Regd Post & then move the Court of the Dist Judge by filing a application u/s-34 of A & C Act. Remember that there is no revision provision against the Award passed by the Arbitrator. Only you can pray to set aside the award.

jaiprakash 19 August 2017

Sir, As advised, I am in the process of getting award copy from the bank, when I met local advocate, he says that I need to pay 50% of the amount to court. Is it true? please advise

LAXMINARAYAN - Sr Advocate. ( solve problems in criminal cases. lawproblems@gmail.com) 19 August 2017

Now there are two steps after amendment in the ARBITRATION ACT. One is appeal for setting aside the award which has to be done in 45 days of award. Since you got knowledge later so you have to also file delay condonation application giving details of how and when you got knowledge of award.

Second step is for stay of the award for which you have to file a separate application for which depending on your objections the court will fix deposit money for stay.

(Guest)

Originally posted by : jaiprakash
	Sir, As advised, I am in the process of getting award copy from the bank, when I met local advocate, he says that I need to pay 50% of the amount to court. Is it true? please advise

That is likely in most cases. However, you may follow the steps as advised by Advocate Laxminarayan.

(Guest)

Agree with both Shri Lakshmi Narayan and Shri Jigyasu.

Warren Carrillo 27 January 2018

Personal loan is the good facility for meeting financial needs as such is the handy one for solution of things. The simple agree repayment is the solution of such loan pay back system, banks get number of awards on such loan scheme. This seen in site bestessay.com writing service review for more and better system.