Delhi High Court
Techno Forge Ltd. & Ors. vs Religare Finvest Ltd. on 7 April, 2016
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on :14th March, 2016
Judgment pronounced on: 7th April, 2016
+ O.M.P. 495/2015 & I.A. Nos.20555-56/2015
TECHNO FORGE LTD. & ORS. ..... Petitioners
Through Ms.Meera Kaura Patel, Adv.with
Ms.Shivani Singh, Adv.
versus
RELIGARE FINVEST LTD. ..... Respondent
Through Mr.Ajay Uppal, Adv.
CORAM:
HON'BLE MR.JUSTICE MANMOHAN SINGH
MANMOHAN SINGH, J.
1. The petitioner has filed the present petition under Section 34 of
Arbitration and Conciliation Act, 1996 (hereinafter referred to as the
'Act') for setting aside ex-parte award dated 25th October, 2012 passed by
the sole Arbitrator.
2. Along with objections, the petitioner has also filed an application,
being I.A. No.20555/2015 for condonation of delay of 1065 days in filing
the objections. Notice of the said application was issued by order dated
12th October, 2015.
3. It is stated by the petitioner that an ex-parte arbitral award dated 25th
October, 2012 ("impugned award") in the matter titled as 'Religare
Finvest Ltd. v. TechnoForge Ltd. & Ors.' was passed by the sole
Arbitrator appointed by the respondent in respect to loan facility advanced
by the respondent, which is subject matter of challenge in the present
petition.
4. It is also stated that they came to know about the existence of award
on 29th July, 2015, upon receipt of summons from Additional District
Court, Ankleshvar, Gujarat where execution of the impugned award vide
Exe. R. 40/2014 was preferred by the respondent.
5. On merit, it is admitted by the petitioners that they had obtained the
SME loan facility of Rs.30,00,000/- from the respondents (Non-Banking
Financial Institution) vide Loan Agreement bearing reference no.
XSMEANK00024019 dated 24th April, 2011 which was repayable in 36
equal monthly instalments along with an interest and there are many
defaults in repayment of loan amount.
6. Counsel for the respondent has informed the Court that his client is
ready to settle the account on reasonable terms. But it appears that the
petitioners are not ready with the same. During hearing, the petitioners
have not shown any interest to repay the amount due.
7. Section 34 of the Act read as under:-
"34 Application for setting aside arbitral award. --
(1) Recourse to a Court against an arbitral award may be made
only by an application for setting aside such award in
accordance with sub-section (2) and sub-section (3).
(2) An arbitral award may be set aside by the Court only if--
(a) the party making the application furnishes proof that--
(i) a party was under some incapacity; or
(ii) the arbitration agreement is not valid under the law to which
the parties have subjected it or, failing any indication thereon,
under the law for the time being in force; or
(iii) the party making the application was not given proper
notice of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case; or
(iv) the arbitral award deals with a dispute not contemplated by
or not falling within the terms of the submission to arbitration,
or it contains decisions on matters beyond the scope of the
submission to arbitration:
Provided that, if the decisions on matters submitted to
arbitration can be separated from those not so submitted, only
that part of the arbitral award which contains decisions on
matters not submitted to arbitration may be set aside; or
(v) the composition of the arbitral tribunal or the arbitral
procedure was not in accordance with the agreement of the
parties, unless such agreement was in conflict with a provision
of this Part from which the parties cannot derogate, or, failing
such agreement, was not in accordance with this Part; or
(b) the Court finds that--
(i) the subject-matter of the dispute is not capable of settlement
by arbitration under the law for the time being in force, or
(ii) the arbitral award is in conflict with the public policy of
India.
Explanation. --Without prejudice to the generality of sub-
clause (ii) it is hereby declared, for the avoidance of any doubt,
that an award is in conflict with the public policy of India if the
making of the award was induced or affected by fraud or
corruption or was in violation of section 75 or section 81.
(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 or, if a request
had been made under section 33, from the date on which that
request had been disposed of by the arbitral tribunal: Provided
that 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, but not thereafter.
(4) On receipt of an application under sub-section (1), the Court
may, where it is appropriate and it is so requested by a party,
adjourn the proceedings for a period of time determined by it in
order to give the arbitral tribunal an opportunity to resume the
arbitral proceedings or to take such other action as in the
opinion of arbitral tribunal will eliminate the grounds for setting
aside the arbitral award."
8. The objections are not filed within the prescribed period of time.
9. There is admitted delay of 1065 days in filing the objections.
Original record is produced by the respondent which has been examined
by the Court. It reveals that the copy of the award is received and A.D.
cover after service has been tagged with the original record.
10. It appears from the record that the petitioners were fully aware
about the pendency of the arbitration proceedings as well as the passing of
the award.
11. The delay after expiry of the prescribed period under Section 34 of
the Act cannot be condoned. Hence, the objections are dismissed.
12. No costs.
(MANMOHAN SINGH)
JUDGE
APRIL 7, 2016
