Madras High Court
M.Gnanamani vs M/S.Shriram Transport Finance ... on 6 February, 2023
Arb.Original Petition 90 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.02.2023
CORAM:
THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY
Arb.Original Petition (Com.Div.) No.90 of 2022
and Application No.717 of 2022
M.Gnanamani ... Petitioner
Vs.
1. M/s.Shriram Transport Finance Co.Ltd.,
Represented by its authorized
Representative T.Vijayakumar,
No.221, CLC Works Rd.New Colony,
Chrompet, Chennai - 044.
2. P.Kumaran ... Respondent
PRAYER: The Original Petition has been filed under Section 34(a)(2)(ii)&(iii)
of Arbitration and Conciliation Act, 1996, to set aside the purported Ex-parte
Arbitration Award passed on 16.11.2021 by the Sole Arbitrator vide Arbitration
case No.792 of 2020 and direct the first respondent to pay the costs of the
petition.
https://www.mhc.tn.gov.in/judis
Arb.Original Petition 90 of 2022
For Petitioner : Mr.R.Vasudevan
For Respondent : Mr.Peer Mohamed
-----
ORDER
This Original Petition has been filed to set aside the Arbitration
Award passed on 16.11.2021 by the Arbitrator vide Arbitration Case No.792 of
2020.
2. The contention of the petitioner was that the present claim made
before the Arbitrator is barred by limitation. According to the petitioner, in
terms of loan agreement dated 28.09.2010, the petitioner borrowed a sum of
Rs.4,20,000/-. The first due started on 05.11.2010 and the last due date is
05.10.2013. According to him, so far, he has paid eight installments, which
comes to Rs.1,48,243/- and the last payment made by the petitioner was on
27.05.2011. The vehicle was seized on 30.09.2011 and the same was sold for
Rs.2,90,000/-. Therefore, the realized amount comes to Rs.4,38,243/-. In the
said circumstances, the Arbitration Award was passed on 16.11.2021.
https://www.mhc.tn.gov.in/judis
Arb.Original Petition 90 of 2022
3. The main contention of the petitioner is that the entire claim is
barred by limitation. Therefore, referring the matter before the Arbitrator and
passing of the Award is not sustainable. Thus, he prays to set aside the Award
passed by the Arbitrator dated 16.11.2021.
4. In support of his contention, he would rely on the judgments of the
Hon'ble Supreme Court in Visakhapatnam Port Trust Vs. M/s.Continental
Construction Company [ 2009 (4) SCC 546 ], Mangla Advisory P.Ltd. Vs.
Cybizcal (International) and another [ 2009 (Sup2) ArbiLR 335 ] and
Bharat Sanchar Nigam Ltd. and Anr. Vs. M/s.Nortel Networks India Pvt.
Ltd. [ SLP(c) No.1531-32/2021 ].
5. The learned counsel for the respondents submits that admittedly,
notice under Section 21 of the Arbitration and Conciliation Act, was issued on
31.10.2020 and the last due date is 05.10.2013. He fairly submits that after a
period of seven years from the date of commencement of the limitation period,
the claim was made by the respondent.
https://www.mhc.tn.gov.in/judis
Arb.Original Petition 90 of 2022
6. Considering the submission made by the learned counsel appearing
on either side, it is very clear that the present claim was made after a period of
seven years from the date of commencement of the limitation period. It is seen
that the last due date for the repayment of loan is 05.10.2013 and hence, the
claim petition should have been filed on or before 04.10.2016. However, the
present claim petition was filed subsequent to the Section 21 notice dated
31.10.2020. The Section 21 notice was issued after the expiry of three years.
Therefore, the present claim is barred by limitation and the Award passed by
the Arbitrator is not sustainable. Since the Award is passed against time barred
claim, without notice of the same the award came to be passed, hence, the same
is liable to be set aside. Accordingly, the Award is set aside and this Original
Petition is allowed. Consequently, connected application is closed. There shall
be no order as to costs.
06.02.2023
asi
https://www.mhc.tn.gov.in/judis
Arb.Original Petition 90 of 2022
KRISHNAN RAMASAMY, J.
asi
Arb.Original Petition (Com.Div.) No.90 of 2022
and Application No.717 of 2022
06.02.2023
https://www.mhc.tn.gov.in/judis
