Petitioner aggrieved by ex-parte award sought protection. Upon consent and offer to pay in installments, petition disposed allowing payment plan.
Petitioner allowed to deposit Rs. 2 lakhs within two weeks followed by three quarterly installments of balance amount.
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Court No. - 40
Case :- MATTERS UNDER ARTICLE 227 No. - 6693 of 2019
Petitioner :- Rahat Niyaz Respondent :- H.D.F.C. Bank Limited And 2 Others Counsel for Petitioner :- Rupendra Kumar Mishra Counsel for Respondent :- Krishna Mohan Asthana
Hon'ble Manoj Kumar Gupta,J.
Heard Sri Rupendra Kumar Mishra, counsel for the petitioner and Sri K.M. Asthana, counsel for the respondent-Bank. With their consent, the instant petition is being disposed of finally without calling for a formal counter affidavit.
The petitioner had admittedly taken a loan of Rs.5,10,000/- from the respondent-Bank for purchasing Nissan Micra XL Car. When he defaulted in payment of the instalments, the matter was referred to the Arbitrator. The Arbitrator passed an award dated 7th August, 2016 for a sum of Rs. 4,87,000 plus interest at the rate of 11.5% per annum along with 2% penalty till the realization of the entire amount. The respondent-Bank filed Execution Case No. 262 of 2017 for execution of the award and in which, a recovery certificate has been issued on 22.2.2019 for a sum of Rs. 5,83,000 plus interest. Aggrieved by the exparte award and recovery certificate, the instant petition has been filed.
Counsel for the petitioner does not dispute that the petitioner had taken loan from the respondent-Bank. He also does not dispute that the limitation for filing objection under Section 34 of the Arbitration and Conciliation Act,
1996 against the ex-parte award has expired long back. He submitted that the petitioner is willing to deposit the entire amount payable under the impugned award provided some reasonable time is granted to him. He states that the petitioner would deposit the entire amount under the impugned award along with interest in installments in one year, to which Sri K.M. Asthana learned counsel for the respondent-Bank has no objection. He submitted that the first installment be directed to be deposited immediately.
Accordingly and with consent of learned counsel for parties, the instant petition is disposed of as follows:-
(A) The petitioner shall deposit a sum of Rs. 2 lacks within two weeks.
(B) The balance amount shall be deposited by the petitioner in three quarterly installments by the first week of the quarter for which it is due.
In case of default in depositing the amount as stipulated above, the protection granted shall stand vacated automatically and it shall be open to the respondent-Bank to recover the entire remaining amount by taking recourse to process of law.
(Manoj Kumar Gupta,J.)
Order Date :- 14.10.2019 Chandan
Rahat Niyaz
H.D.F.C. Bank Limited
Manoj Kumar Gupta
As recorded by the court registry
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