Rekha – Arbitrator

Jyothi – Claimant
Girish - Respondent
Roopesh - Advocate Counsel for Claimant
Jayamahadev – Advocate Counsel of Respondent
Ravi Prasad – Witness

FACTS OF THE DISPUTE

The Claimant is a Company incorporated under the Companies Act 1956 and carrying on business of
providing various loans to customers who are in need of financial assistance.

During the course of the business of the Claimant Company, the Respondent approached the Claimant
Company for Taking business mortgage loan and after considering the Respondent’s application, loan for
a sum of Rs.65,99,000/- was sanctioned to him.

In this regard a Loan Agreement was entered between the Claimant and the Respondent on 31-08-2018
under Loan Agreement No.1234567890 at the floating rate of 13.75% interest per annum.

Respondents undertook to pay the equated monthly instalments in 177 months i.e., Rs.86,807/- per
month. In order to secure the repayment of the above said loan, the Respondent had mortgaged their
property No.35, assessment No.34, Leggere Village, situated at 17 th main road, J.C.Road, Nagar, Geleyara
Balaga in favor of the Claimant Company.

The Respondent was a regular defaulter in respect of payment of equated monthly instalments and the
cheques issued by him were dishonored.

The Respondent has not paid equated monthly instalments as per the agreement. Hence, which in breach
of terms and conditions of the said Loan Agreement.

Since it was a breach of the terms and conditions of the Loan Agreement the Claimant Company was
constrained to terminate the said Loan Agreement.

It is further stated that due to the defaults in payment of the monthly instalments and as on 30-06-2020
the Respondent in due a sum of Rs.67,36,129/- as per the account extract.

Hence, the Claimant moved an application under Section 8 of the Arbitration and Conciliation Act (“Act”)
1996 before the sole arbitrator - Mrs.Rekha

CLAIMANT ARGUMENT
My Client M/S. RB Financial Limited is a Financial Company incorporated under the Companies Act 1956 and
carrying on business of providing various loans to customers who are in need of financial assistance.

During the course of the business my client lend a mortgage loan of Rs.65,99,000 to Mr. Srinivas Prasad in order to
improve and expand his hotel and restaurant business.

The Respondent – Mr.Srinivas Prasad initially paid the EMI’s amount for 3 months later he was irregular for rest of
the period until Sep-2018, The Respondent was a regular defaulter in respect of payment of EMI’s and the cheques
issued by him were dishonored (Attached the Loan Statement as Annexure 3).

The Respondent – Mr.Srinivas did not contact My Client, when my My Client tried to contact him with regard to
the same.

He’s never been contacted and also he wasn’t responded to the legal notices issued by my client RB Financial
Limited.

My Client learnt that the Respondent - Mr.Srinivas Prasad with the sole intention of cheating, he is not making any
payments which he supposed to do.

It is also observed and noted that due to the Road Expansion by the appropriate authority, it was already
compensated to the property at the current market value.

This matter wasn’t brought the notice of my client and Mr.Srinivas was never wanted to clear his dues with that
amount.

It clearly appears that The Respondent - Mr.Srinivas with malice and ulterior motive trying to cheat my client by
deliberately concealing the matters of the compensation received from the Road Authority.

And also Mr.Srinivas Prasad intentionally and deliberately trying to defeat the rights of the My Client.

My Client - RB Financial Limited is a financial organization handling public money and is answerable to public for
any losses. My client will undergo with huge losses if they don’t recover the dues.

We are herewith sumitted tDocuments submitted:

Copy of the Loan Agreement. As annexure 1
Copy of Cheques written in favor of M/S. RB Financial Limited as annexure 2
Attached the Loan Statement as Annexure 3
Copy of the Mortgage Deed as annexure 4
Copy of legal notices sent to Mr. Srinivas Prasad. As annexure 6

I have also enclosed the copy of recent judgement as annexure 5, i.e M/s Fullerton India Credit Company Ltd
V/s Chinnareddy and Rukmani C.A No.13/2019 , whereinwich the arbitrator has passed the judgement in
favor of the claimant. The facts of the case are similar to this where the Respondent was a regular defaulter and
honorable sole arbitrator Mr.Khan Ahamed has passed an order to recover the amount from the responded.

Hence the My Client referred this dispute to arbitration under section 7 of the Arbitration and Conciliation Act
1996, therefore I request the honorable forum to render the justice to my client - M/S. RB Financial Limited.

To conclude this case,

Arbitrator has given a fair judgement keeping in mind that the RB Financial Limited is a financial organization
handling public money and is answerable to public for any losses at the same Mr.Srinivas Prasad has incurred huge
losses due to inevitable situations and circumstances and also market value of the property is much more than the
outstanding to be recovered, hence on humanitarian ground and keeping in mind the COVID -19 pandemic
situation.

Its concluded in a very fair and just way and giving 3 months’ time to the defend to clear the loan with interest
failing in which RB Financial will take necessary legal actions to liquidate the assets and settle the loan.