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Is ruling by arbitrator of Financial Company binding on borrower
27-Jul-2023 (In Arbitration Law)
I had availed of a loan on Used Commercial vehicle. Due to non payment of EMIs the company took repossession of the vehicle. Without informing us they sold the vehicle for 26000 which is very low, the market cost of which was 140000. Now an arbitrator appointed by them has sent us a notice for arbitration. Am I bound to comply.
Hi,
If the loan agreement signed between yourself and the Finance Company has an arbitration clause, then yes you must have to comply with the notice issued by the arbitral tribunal initiating arbitration proceedings for recovering of the loan amount (Principal and interest). Though they took possession of the vehicle and sold it, they still can initiate proceedings for recovery of the balance amount but you can agitate before the arbitral tribunal about the value for which the vehicle was sold.
If the loan agreement signed between yourself and the Finance Company has an arbitration clause, then yes you must have to comply with the notice issued by the arbitral tribunal initiating arbitration proceedings for recovering of the loan amount (Principal and interest). Though they took possession of the vehicle and sold it, they still can initiate proceedings for recovery of the balance amount but you can agitate before the arbitral tribunal about the value for which the vehicle was sold.
Helpful?
10+
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Adv. Shobhan M P
Chennai | 100+ Answers
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U can changelle the appointment of the arbitrator because appointment of the prejudice arbitrator may lead the Case to unsecusseful results better u must oppose the appointment and u can give say it's a civil dispute based on the agreement
Helpful?
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Adv. Sanjay J Rajpurohit
Chennai | 25+ Answers
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