Abuse of Arbitration clause
s.loganathan
(Querist) 17 July 2010
This query is : Resolved
I have always put my faith in the law, inspite of its cumbersome procedures and delays. I am shocked by the fact that the rich and powerful are misusing the Tribunals that have been empowered and shielded by intervention of courts. I am entangled by such a situation and seem helplessly persecuted by the very law that is supposed to protect. This is my case:
1. I obtain a loan for purchase of vehicles from TMFL in 2006 and signed a host of papers for the same.
2. Regular installments were made, until end of 2007, when I was admitted to hospital for CABG surgery suddenly and was discharged after 2 months due to post operative complications.
3. On my return, I approached the finance company and whilst I was talking to them in their office with the payment, they forcibly repossessed my vehicle parked in front of their office.
4. Being annoyed by their actions, I lodged a police complaint and they returned my vehicle in the presence of the police inspector, whereby at the time of receiving payment from me, a letter of agreement was signed that in the event of non clearing of dues all the vehicles will be handed to TMFL by 19/01/2008, signed mutually by us.
5. One of the two identical vehicles was sold by me and the purchaser cleared the due directly to TMFL.
6. Even before all these happenings, I had written to TMFL management asking for a copy of the agreement executed as it was promised to me at the time of signing it hurriedly in good faith upon such a large company.
7. When I could only dispose of one vehicle in time, and keeping to the letter of agreement between us, I informed them about the location of the remaining vehicle and they took it.
8. After about six months, I receive a telegram that they are taking possession of my vehicle. I immediately send a telegram to them stating the fact that they had already taken possession as per our letter of agreement and that it is a misleading charade.
9. In between all these, I kept receiving letters to renew insurance from the H.O. of TMFL to which I wrote, clarifying the letter of agreement and also requested them for a copy of the hire-purchase agreement.
10. I got a letter from the Road Transport Dept. asking to renew my permit, and I also wrote to them informing about the letter of arrangement, whereby I no longer am owner and in possession of the vehicle or am not responsible for it, and sent a copy of the reply to the Dist.Collector.
11. We kept receiving reminders from various sections of TMFL and kept replying always refering to letter of agreement and asking for copy of hire-purchase agreement.
12. Suddenly, one fine day, I get a legal notice demanding an illegal exorbitant amount, unthinkable in any magnitude.
13. I immediately send notice, informing of letter of agreement and file a case before the Principal Dist. Munsif Court.
14. The TMFL have yet to file counter, even till date and have now made a application for rejection of plaint, which has been refuted by my counsel.
15. While this process is already underway, TMFL invokes the Arbitration clause in the non-available hire-purchase agreement, and I get a notice from their lawyer and subsequently from the Arbitrator. My counsel, sends a legal reply to the Arbitrator and TMFL lawyer, specifically mentioning that there is already a case pending before the PDM court.
16. Unmindful of the court proceedings, the Arbitrator sends another notice of hearing.
17. Again, my counsel replies and puts the Arbitrator on notice.
18. The Arbitrator passes an order ex-parte.
19. All my numerous correspondence are backed by postal acknowledgement and the police complaint by a receipt.
OK, this is the rendition of events. What is my predicament? What recourse should I take? Can I stay the Arbitrators order? If so, how do I proceed? Can I sue the Arbitrator, who seems to have acted biased with the giant company? I am confused, can someone please throw so light to this matter.
Devajyoti Barman
(Expert) 17 July 2010
Though there are several issues to be dealt with but in the given facts you have to first make an application under section 34 of the Arbitration and Conciliation Act to set aside the ex parte order first.
Chanchal Nag Chowdhury
(Expert) 17 July 2010
Proceed in a criminal court against the Financier. This is outside the purview of Arbitration.
Next, contest the award u/s 34 of the Arbitration and Conciliation Act . File applications for interim orders especially to get back the vehicle.
AS FOR YOUR RESPECT FOR THE LAW, your inaction smacks of indolence. Law aids the vigilant & not the indolent.
s.loganathan
(Querist) 18 July 2010
Thanks! Mr.Barman & Mr.Chowdry. Certainly I am exploring the avenues of setting aside the order u/s 34. Would the fact of not giving a copy of the said agreement have any bearing on my case? Criminal proceedings? Pls give me an insight.
