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Divya (nil)     18 February 2012

Execution money decree after arbitration award

My brothers had credit card dues...Bank went for an ex-party arbitration award & to execute that award they went to Sessions court at Thane (Maharashtra)...They had initially sought for attachment of properties but since my brothers did not have properties, bank has now filed an application for arrest of my brothers....

 

What process can be followed if I want to make an application in the sessions court that we can pay monthly instalments since the award with interest is close to 20 lakhs & in no way a common man can afford to pay this amount instantly or in 4-5 months....

 

What sections can I avail of CPC in Sessions court itself to pay in monthly instalments in very less amount as much as possible so that I can avoid arrest of my brothers and also slowly dispose off bank's liability.

 

Here there is no court who passed the decree.....After award, the bank proceeded straight for execution & took drastic steps...As per CPC to avail instalments one can go to the court who passed the decree.



Learning

 9 Replies

Adv Archana Deshmukh (Practicing Advocate)     18 February 2012

Arbitation award are executed through district court only as per the provisions Arbitration and conciliation Act. If you have not challanged the award and want to pay by installments you can request the bank and the court also. The banks are   interested in the recovery of their money rather than arrests. So if you show your willingness to pay by depositing some amount in the court, they will grant you further time. 

Divya (nil)     18 February 2012

Bank is not allowing long instalments..They are getting aggressive to recover amount in 3-4 instalments...How can i get a time limit of 2-3 years by paying legible instalments. Going to a high court is a cumbersome process....Is there a provision under CPC which can be invoked or is there a case study wherein I ask for equated monthly instalments spread over 2-3 years.

Kumar Doab (FIN)     18 February 2012

Credit cards have credit limits and CC companies do not allow usage more than credit limit.

Did your brothers avail any loan on CC? Is this huge amount priniple or inclusive of interest, finance charges, penalties etc?

It shall be appropriate to get in touch with an experienced and competent lawyer and proceed under expert advise.Let your lawyer handle the case. Bank has sensed that your brothers are not coming forward and are prbably stressed and that is why bank is following the strategy to exert more presuure.

Advocate Bhartesh goyal (advocate)     18 February 2012

challange the Award by filing petition u/s 34 of Arbitration and Conciliation Act before District judge having jurisdiction to entertain the same.If the Distict court admits the petition than it will be automatic stay on execution  proceedings.

Divya (nil)     18 February 2012

Hello Kumar,

The amount claimed by bank includes interest @18% & other other litigation expenses.....

jeetendra patel (lawyer)     19 February 2012

Challenge the award in district court by filing an allication under section 34 of Arbitration Act.

JANAK RAJ VATSA (ADVOCATE)     30 April 2012

you should challenge the ex-parte award under the arbitration & conciliation act. the execution degree would auto get stalled.

Saurendra Rautray (advocate)     24 August 2012

Dear Mam,

I agree with Advocates suggestion above to file Section 34. As stated it has been an exparte award. Now since they have moved to execute the award in a  session court, it is pertinent to mention that an execution of an award has to be done through the District court. Now i think either you may have participated in the said proceeding even though thats the wrong forum to execute and arbitration award. But that shall constitute your date of knowledge of the exparte award. See the date on notice you have receieved and if 3months and 30 days have lapsed then you have already gone beyond the limitation period for filing section 34 before the district court and if not please go an file challanging the exparte order. Thanks.

 

Kindly also ask for the agreement copy and see if there is any arbitration agreement or any documents on which they have relied stating there is an arbitration clause between you and them. Thanks

Tapeshwar Singh Parmar (lawyer)     01 March 2017

Sir please let me know the case laws about this automatic stay i need it urgently

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