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Unresolved Arbitration Despite Loan Regularization
24-Apr-2026 (In Banking / Finance Law)
​I have a Micro Loan Against Property with Cholamandalam. Branch management guaranteed in writing to withdraw legal actions if I cleared my dues. I paid all defaulted installments by late March 2026. My account is regularized, and my Statement of Account shows a zero overdue balance.
​However, the branch failed to notify their legal department and the arbitrator. Because of this, arbitration wasn't terminated. I received a notice for an impending May 8th hearing with the threat of an ex-parte order. The arbitrator requires a formal "Memo of Compromise" from Chola's counsel to close the case. This hasn't been submitted despite their assurances.
​Assistance Required:
​Compel Withdrawal: Intervene to force Chola's counsel to formally file the withdrawal application.
​Representation: Represent me on May 8 to present my zero-overdue statement and settlement proofs to prevent an ex-parte award.
I understand your concern regarding the continuation of arbitration proceedings despite full repayment of your loan. Based on the documents you have shared, your account stands regularised with zero overdue, and the issue appears to be due to internal miscommunication on the lender’s side. Please be assured that this situation is legally manageable and does not put you at immediate risk if handled properly.
You need not worry—this is a procedural lapse from their side, and I will ensure that your rights are fully protected and the matter is resolved smoothly.
Helpful?
Adv. Sreebalaji
Coimbatore | 5+ Answers
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