Pradeep (None) 20 November 2014

Recieved a letter about appointment of arbitrator section 11

I had taken a Personal loan from Kotak Mahindra Bank about a year ago. I received this letter today. Not sure what it means, please assist in how to respond to it. To, (Lawyer's name & Address Mentioned here) Ref: Appointment of Arbitrator under section 11 of Arbitration and Conciliation Act 1996 in respect of Loan Account No. (Hidden) Our client has decided to invoke arbitration clause to resolve the aforesaid Claim & dispute against the borrower for an outstanding amount of Rs 362000.0 The bank hereby invokes the said arbitration clause and appoints you as the arbitrator to adjudicate upon the claims of the Bank arising out of Agreement executed between the parties. You are requested to fix a preliminary meeting of arbitration proceedings with intimation to the parties as to date and venue. Copy to: (My Name & Address) Your faithfully Lawyer Firm name So what exactly does this mean? I took the loan worth Rs 4 Lac to repay my outstanding Credit Card & PL Debt as well as to fund my newly started business. However, my business started failing soon and now I neither have a business or a Job. I have been looking for job since past 6 months now but can't find any. PLEASE NOTE: My Personal Loan EMI's have been bounces every month since past 4-5 months now. However, I have always made the full payment before the end of that calender month. Even as on today, there is only 1 EMI to be paid, which bounced on 10th of Nov and I should pay off this one as well before 30th November. Thanks

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adv.raghavan (Advocate,9444674980) 20 November 2014

It is better to honor the commitment as you are doing now, At the time of borrowing you would have signed lot of documents along with contracts, no bank in the world will extend that copy to the customer or borrower, in your case they would have referred Arbitration clause, in case of default. It is better to attend the proceeding and ask for copy of the contract u have signed based on that you can take a call. If you fail to attend the matter will be decided in your absence, and the bank can initiate EP proceeding immediately following that.

Pradeep (None) 21 November 2014

Also, is this a trick by the Bank who might just be trying to scare me to pay the only pending EMI asap?

After all, if they are serious about this then why not send me the Arbitrator hearing information directly? Instead, they just sent me this notice, which only implies that it might take place.

Any suggestions would be appreciated.

Thanks all