My dear friends,
One of my friends had availed a term loan from a NBFC and regularly paying EMIs, with a delay ranging from 2 to 15 days as against its schedule date of payment. As per the loan agreement, in case borrower fails to make EMIs beyond a month, then lender has an option to appoint a sole arbitrator at their discretio. Suddenly, that NBFC invoked arbitration clause and appointed a sole arbitrator for which no notices were received. Secondly, this case cannot be maintainable in Arbitration, as the delay in paying EMIs were not even in the range of wee or two.
Apart from the above, that lender regularly presenting the signed cheques and issuing notice U/s.138 to the borrower and to their guarantors (upon cheque bounces) and suffacating. Despite, we mentioned to the lender that as the case is in arbitratio, and requested them not to collect the EMIs and also requested them not to present the cheques. But still collecting the EMIs in couple of days later the cheques were dishonoured.
First of all,
(a). We didn't receive arbitration appointment notice
(b). Basing on the merits of the case, this case cannot be maintanable in Arbitration
(c). When the case is in Arbitation, the lender is presenting the cheques.
(d). Despite, the case is in Arbitration, they are collecting EMIs either by one way or the other.
Meanwhile, we have given a proposal to the Lender to reschedule our loan amount and further requested to grant us payment holiday for a period of 9 - 12 months, by which time, we can consolidate our financial strenghts to close the loan account by making 100% dues.
Request your valueble suggestions for wayforward please.