redemption of mortgage vs sec 8 Arbitration Act
Rajakumaresan
(Querist) 24 September 2013
This query is : Resolved
Suit filed by plaintiffs stating tat they obtained loan from financial institution after mortgagig their property for 30L, whereas the loan was disbursed for 15L and the balance amt was appropriated towards an earlier loan without their consent, now they hv filed a suit for redemption stating tat only 15L was released out of 30L, now there is an arbitration clause in the loan agreement, whether section 8 Arbitration act is applicable?
Murali Krishna
(Expert) 25 September 2013
Arbitrability of the dispute is the criteria for referring any dispute to arbitration. If a dispute is not arbitrable, availability of arbitration clause does not render said dispute amenable to arbitration.
You did not mention whether it is a mortgage suit. If it is so, mortgage suit is not only about determination of existence/enforcement of mortgage by sale or for determination of amount due. In such case, it should be tried by Court and not by an Arbitral Tribunal.
Rajakumaresan
(Querist) 25 September 2013
Redemption of mortgage Suit filed by plaintiffs stating tat they obtained loan from financial institution after mortgagig their property for 30L, whereas the loan was disbursed for 15L and the balance amt was appropriated towards an earlier loan without their consent, now they hv filed a suit for redemption stating tat only 15L was released out of 30L, further they allege that they have paid 7 lakhs and tat they are ready to pay balance 8 lakhs, in realty they have to pay 30 lacs, now there is an arbitration clause in the loan agreement, whether section 8 Arbitration act is applicable?
