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Arbitration award

(Querist) 28 November 2014 This query is : Resolved 
A Non Banking Finance Company (NBFC) has forcibly and illegally towed away a car without prior intimation to the borrower or the local police station just with the help of an arbitration award passed unilaterally against the borrower in his absence.The NBFC did not get any permission from any court to execute this arbitration award . The NBFC did not inform the borrower about this arbitration award either. Can this arbitration award be challenged?I have heard that NBFC has to approach the court to execute this arbitration award Where the court calls the borrower to put his say.What are the legal remedies available with the borrower to challenge this arbitration award and fight the matter? what is the time limit available to challenge this arbitration award?
Devajyoti Barman (Expert) 28 November 2014
Yes, it can be challenged but within 120 days( not thereafter in any condition ) from the date of receipt of information about passing of this award.
It can be challenged in District Court within whose jurisdiction the arbitration proceeding was held.
Anirudh (Expert) 28 November 2014
You have to prefer the appeal against the Arbitral Award within THREE MONTHS from the date of receipt of the arbitral award by you.
Devajyoti Barman (Expert) 28 November 2014
Appeal period is 120 days ( 90 days plus another 30 days).
Section 34(3) of the Act.
Anirudh (Expert) 28 November 2014
As per Sec. 34(3), "An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award"

Only if "the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months" it may entertain the application within a further period of thirty days. The court may get satisfied or may not. Therefore, anybody preferring an appeal after 30 days of the date of receipt of award is clearly AT THE MERCY OF THE COURT.

However, a person can prefer an appeal AS PER STATUTORY RIGHT OF APPEAL, within 3 months from the date of receipt of Award.

Therefore, from all counts, the period for appeal is only three months.

The further extension of one month by the Court is not automatic. Therefore it would not be correct to say by any stretch of interpretation of the provisions that the time period for appeal of an award is 120 days.
Murali Krishna (Expert) 28 November 2014
Yes. Anirudh is correct. I concur with him.

1. It is not appeal. It is challenge to award.

2.The limitation for challenging an arbitration award is 3 months. It can be 89 days to 91 days depending upon the months.

3. 30 days beyond 3 months is a period that can be granted by court on its satisfying as tot he delay. This is discretion of the Court.

4. Therefore, limitation for challenging an award is 3 months only. Not 120 days.
Shailesh Kr. Shah (Expert) 28 November 2014
since you have not received arbitration award, then you can challenge after receiving of award.
Devajyoti Barman (Expert) 28 November 2014
No separate appeal lies except under the provision of section 34 of the Act.

When the grace period of 30 days is there, the period of setting aside can always be considered to have within 120 days.

In any case appeal period is 30 days at least in Calcutta High Court.
Kvijay12345 (Querist) 28 November 2014
I have heard that the arbitration award was passed on 5th june2014 ; but I have not received the copy yet officially.In this situation what can be done ? The NBFC has kept the borrower in dark totally.
Shailesh Kr. Shah (Expert) 28 November 2014
period will start when you have received award.
Anirudh (Expert) 28 November 2014
On what date the NBFC tow away your vehicle?

What did you do thereafter? Did you make any complaint to the police? Or any other action or did you approach any court of law that your vehicle has been taken away without due process of law?
Rajendra K Goyal (Expert) 28 November 2014
What action were taken by you after the car was taken away by the NBFC?

Consult local lawyer and discuss the various aspects and strategy.
Kvijay12345 (Querist) 28 November 2014
The vehicle was towed away on 26.11.2014.I have complained to the local police station on 27.11.2014 in writing & got the ackowledgement of the complain. What further legal action can be taken?
Guest (Expert) 28 November 2014
Consult a Local Good Advocate and Proceed accordingly.
Devajyoti Barman (Expert) 28 November 2014
Mention a date of knowledge which is within the last 120 days and file an application u/s 34 of the Act to challenge the award.
Let them prove that they had intimidated you prior to that.
Shailesh Kr. Shah (Expert) 29 November 2014
you are well advised by the learned experts. proceed accordingly.
Advocate. Arunagiri (Expert) 29 November 2014
Have you received any notice from the arbitrator?

When the arbitrator is appointed, the it is the duty of the arbitrator to send you notice and them set exparte. Even after exparte he has to send you the order copy.

You have you confirm whether the above procedures were followed are not.

If the above procedures are not followed, you can set aside the arbitration award on this ground alone.

I have my own doubt that many of the finance companies claim themselves falsely that they have got the arbitration award.

In that situation you can ask through the police to produce the arbitration award copy.
Kvijay12345 (Querist) 04 December 2014
Dear adv. Arunagiri,
neither the copy of the arbitrator award nor the intimation notice to tow away my vehicle was sent to me nor to the local pollice. And no document was produced to me.Infact the vehicle was towed away by the four gundas of the finance company forcibly from my driver.can the section of theft and burglary be applied in the police complain,as the police have not yet taken any action on my previous complain dt.27.11.2014?which section of ipc for theft be applied?what further legal actions can be proceeded apart from the consumer forum as I have already initiated the proceedings in consumer? forum?Can any action be proceeded for defamation & humiliation?I have loads of the evidences against the finance company.


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