2017 (11) TMI 2061

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....the proceedings for arbitration and the 1st respondent (in short 'company'), the claimant. 2. The borrowers availed of a loan from the company in the year 2006 to the tune of Rs. 1,57,25,000/- under two agreements dated 3.4.2006 and 3.7.2006 and three separate disbursements. Admittedly, the petitioners discontinued the payment of instalments due, as a result of which, the agreements stood cancelled by the company. The Agreements contained a clause for resolution of disputes by arbitration. A claim was filed by the company before the sole Arbitrator and in addition to various claims, interest at the rate of 24% per annum was sought on the unpaid dues. 3. After hearing the parties in detail, an award was passed by the sole arbi....

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.... has become final, in so far as no appeal under section 37 of the Act has been filed challenging the same. 5. A final award came to be passed on 27.12.2014 wherein the Arbitrator finds the borrowers liable to pay a sum of Rs. 2,21,08,244/- with interest at 24% from the date of claim petition till its realisation in full. 6. The correspondences exchanged between the parties reveal that the factum of loan is not disputed and the borrowers have, infact, undertaked to settle the same in full citing immediate financial stringency. Communication dated 06.09.2007 contains a specific commitment by the borrowers to the effect that efforts were on going 'on war-footing', to close the outstandings. Since there were no payments forthcomi....

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.... was recorded and liberty granted to commence proceedings for arbitration. The borrowers preferred an O.S.A. challenging the aforesaid order and a Division Bench of this Court on 19.04.2010, directed the respondent to pay a sum of Rs. 1,03,33,750/- within a period of eight weeks from the date of receipt of the order observing that the dispute as regards the rate of interest would be decided in arbitration. The aforesaid direction for remittance has not been complied with by the borrower till date. 9. Mr. Parasaran relies on the judgment of the Supreme Court in the case of Swan Gold Mining Ltd. V. Hindustan Copper Ltd., dated 22.9.2014, a copy of which has been circulated. 10. Heard learned counsel. The impugned award records the posi....

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....nding dues to the company along with the contracted rate of interest at 24% from the date of claim till the date of realization. The sole dispute raised by the borrowers and canvassed before me is with regard to the rate of interest, being usurious. The allegations of fraud on the part of the company have been noted and adjudicated upon by the Arbitrator and I do not propose to re-visit the same. The thrust of the appeal is solely on the rate of interest that has been found by the Arbitrator to be the agreed contracted rate warranting no interference at this juncture. The view taken is based on an appreciation of the relevant facts and the terms of the agreements between the parties and, in my view is liable to be confirmed as regards the l....