Madras High Court
D.Dhinakaran vs M/S.Shriram Transport Finance on 2 March, 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 02.03.2022
CORAM:
THE HONOURABLE MR.JUSTICE RMT.TEEKAA RAMAN
C.M.A(MD)No.296 of 2018
D.Dhinakaran ... Appellant
vs.
1.M/s.Shriram Transport Finance
Company Limited
Tenkasi Branch,
Represented by its Authorised Representative
Tr.K.Rajeshkumar
2.M.Ramanathan
3.S.Ayyadurai ... Respondents
PRAYER: Civil Miscellaneous Appeal filed under Section 173 of the
Motor Vehicles Act praying this Court to set aside the executable and fair
order dated 10.02.2017 made in Arbitration O.P.No.86 of 2015 by the
learned Principal District Judge, Tirunelveli, against the award in
Arbitration Case No.563 of 2013 dated 05.02.2015 passed by the learned
Sole Arbitrator, Tirunelveli, by allowing this Civil Miscellaneous Appeal
with costs throughout.
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For Appellant : Ms.S.Akila
For R1 : Mr.Anand C.Rajesh
For R2 & R3 : No appearance
JUDGMENT
*************
This Civil Miscellaneous Petition is filed to set aside the
executable and fair order dated 10.02.2017 made in Arbitration O.P.No.
86 of 2015 by the learned Principal District Judge, Tirunelveli, against
the award in Arbitration Case No.563 of 2013 dated 05.02.2015 passed
by the learned Sole Arbitrator, Tirunelveli.
2.The financier has initiated the arbitration proceedings by
appointing the arbitrator and the case was taken as Arbitration Case No.
563 of 2013. Notice was served upon the appellant and he has also
engaged an advocate. Subsequently, he has not contested the case and
an award was passed on 05.02.2015 directing the petitioner/appellant
herein to pay a sum of Rs.54,579/- along with 18% interest from the date
of claim petition till the date of realization.
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3.Challenging the said award, Arbitration OP has been filed before
the learned Principal District Judge, Tirunelveli, in Ar.O.P.No.86 of 2015
under Section 34 of the Arbitration and Conciliation Act. In the said
proceedings, three major points have been agitated namely sufficient
opportunity was not given to the appellant, the factum that the vehicle
was subsequently sold by the M/s.Shriram Transport Finance Company
Ltd., and the said amount was not properly adjusted and the rate of
interest claimed by the borrower is higher.
4.The learned Principal District Judge, Tirunelveli, after going
through the records has found that one advocate Mr.M.A.Abdul Majeeth
has entered appearance for the appellant herein. Inspite of sufficient
opportunity being offered, he has not contested the case. Hence, the
Arbitrator decided the case on merits and therefore, the plea of
insufficiency of the hearing has also been negatived. The insurance
premium for the vehicle has to be paid by the borrower as per Article 4 of
the Hypothecation Agreement (Ex.A2) and therefore, the same cannot be
treated as excessive payment. With regard to rate of interest, there is a
specific clause in the Hypothecation Agreement as rightly observed by
the Arbitrator. Considering the scope of Section 34 of the Arbitration
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and Conciliation Act, 1996, the learned Principal District Judge, has
rejected the said Arbitration OP and hence, the appellant/respondent in
the Arbitration Proceedings has filed the present appeal.
5.The learned counsel for the appellant would contend that the
excess payment has not been considered by the Arbitrator and there is no
sufficient opportunity to defend the case.
6.The very same objections have been raised before the lower
Appellate Court and the same has been negatived by assigning the
reasons as stated supra.
7.In view of the factual position as revealed from the records, I do
not find any merits in this case. Accordingly, this Civil Miscellaneous
Appeal is dismissed. No costs.
10.02.2022
Index:Yes/No
Internet:Yes/No
cp
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To
1.The Principal District Judge,
Tirunelveli.
2.S.Ayyadurai,
Sole Arbitrator,
Tirunelveli.
3.The Record Keeper,
Vernacular Section,
Madurai Bench of Madras High Court,
Madurai.
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RMT.TEEKAA RAMAN.,J.
cp
JUDGMENT MADE IN
C.M.A(MD)No.296 of 2018
02.03.2022
https://www.mhc.tn.gov.in/judis
