Wednesday, December 25, 2024

Stay Application in Misc Appeal under Section 34 of the Arbitration and Conciliation Act 1996

 

In the Court of the Learned City Civil Court, Calcutta

Before the Learned Chief Judge

2 & 3, Kiran Shankar Roy Road,

Kolkata - 700001

 

Misc. Appeal (Arbitration) no.          of 2024;

                                                          In the matter of ;

An application under Section 34 (4) of the Arbitration and Conciliation Act, 1996, for stay on impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower;

AND

In the matter of ;

Sambhu Mondal, _______Petitioner

-      Versus –

 

Tata Capital Finance Services Limited, and Others;

_______Opposite Parties

 

The humble petition of the above named Petitioner most respectfully;

Sheweth as under;

1.   That Being aggrieved by and dissatisfied with Impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower, the petitioner placed the application under Section 34 of the Arbitration and Conciliation Act, 1996, before the Learned Court.

 

Photostat copy of the impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower, with Postal Envelop and the Track Report, are annexed herewith and marked as Annexure – “A”.

 

2.   That the Petitioner obtained a financial facility from the opposite party no. 1, namely Tata Capital Finance Services Limited, for purchasing one Komatsu India Private Limited – CEQ, Model PC 71, bearing Engine No. N221578, and Machine Serial No. N221578, vide Agreement No. TCFCE0543000010676678, dated 29-10-2019, for a sum of Rs. 25,88,214/- (Rupees Twenty Five Lakhs Eighty Eight Thousand and Two Hundred Fortin) only, at the terms of repayment by way of 45 (Forty Five) monthly installments of Rs. 69,150/- from 1st to 45th installments be payable by the petitioner being borrower to the opposite party no. 1, Lender/ Financer.

 

3.   That the Opposite Party no. 1, namely Tata Capital Finance Services Limited, is carrying the business of Finance on Vehicles and other allied services. The Petitioner obtained the financial assistance from the Opposite Party no. 1, herein under the Agreement No. TCFCE0543000010676678, dated 29-10-2019, for a sum of Rs. 25,88,214/- (Rupees Twenty Five Lakhs Eighty Eight Thousand and Two Hundred Fortin) only. The Opposite Party no. 2, is a Guarantor, who favouring the Petitioner in obtaining such financial facility from the Opposite Party no. 1, herein. The Opposite Party no. 3 herein is a Sole Arbitrator, who passed the impugned Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, and communicated the said award through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower.

 

4.   That the Opposite Party no. 1, namely Tata Capital Finance Services Limited, did not give any copy of the said Agreement No. TCFCE0543000010676678, dated 29.10.2019, to the Petitioner on any occasion as well as the Sole Arbitrator did not take any recourses to serve a copy of the said agreement to the petitioner on any occasion, therefore the petitioner is not in any knowledge about the purports and contents of the said alleged agreement being Agreement No. TCFCE0543000010676678, dated 29.10.2019.

 

5.   That the commencement of the Arbitration proceeding before the Learned Sole Arbitrator has never been communicated to the Petitioner. The Petitioner did not have any knowledge about the arbitration proceeding initiated ever by the Opposite Party no. 1, herein. The Petitioner came into knowledge about the said purported Arbitration proceeding only on receipt of the Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, served by the Opposite Party no. 3, herein being the Sole Arbitrator, which communicated the said award through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower.

 

6.   That the said Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, did not give any particulars and the manner by which the claim has ever been communicated to the petitioner, and the petitioner has ever been asked to participate in the said arbitration proceeding before the Sole Arbitrator Kaushik Banerjee, Advocate. The contents in paragraph no. 4, at page no. 4, as “Notices of the arbitration proceedings were sent by me to their respective last known address of the respondents by “Registered Post”. I am satisfied that the respondents duly received and/ or have due knowledge of the notices issued by me calling upon them to enter appearance in the reference and to file their pleadings”. Such satisfaction in believing that the petitioner have knowledge about the arbitration proceeding without furnishing the particulars of the said alleged Registered Post ever given in his contention so far in the Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, is not sustainable and bad in law.

 

7.   That the Petitioner has obliged in making his repayment by way of installments to the Opposite party no. 1, herein regularly; But as the pandemic COVID-19, commenced in the month of March’ 2020 and taken a substantial period in restoration of normal life in the Country, the petitioner suffered with remarkable financial un-sustainability, therefore the petitioner failed to pay on some of the occasion, however the Petitioner lastly paid on 07/12/2022, the installment money as Rs. 69,150/- (Rupees Sixty Nine Thousand and One Hundred Fifty) only. Thus it has been seen that during the alleged arbitration proceedings which commenced on 13/06/2022, several installments has been paid by the petitioner, which has never been considered or accommodated with the alleged claim of the Opposite Party no. 1, herein. Therefore such bias in favouring the opposite party no.1, herein by the said sole arbitrator is not sustainable and bad in law.

 

Photostat copy of the Loan statement is annexed herewith and marked as Annexure – “B”. 

 

8.   That the transactions particulars has not been discussed or given in the said Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which ever surfaced by and between the Claimant and the respondents, therefore the said arbitral award is not sustainable and bad in law.

 

9.   That the purported alleged Letter of Termination dated 21.07.2021, as contended in the Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, has never served on the petitioner by the opposite party no.1, herein. Such termination cannot take any effect unilaterally. Moreover, the Opposite Party no.1, herein waived such termination or any cause thereof while the Opposite Party accepted the payment of the installments from the petitioner.

 

10.                That the particulars of the payment made by the petitioner and the particulars of the dues, overdue, etc., has not been discussed ever to enrich any logical conclusion in the said Arbitral Award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, therefore the said arbitral award is not sustainable and bad in law.

 

11.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, the said Sole Arbitrator did not state about the sufficient services on the Petitioner. Thus service has never been done on the petitioner. Without pursuing the satisfaction of service of the notices, on the Petitioner, the said Sole Arbitrator proceeded with the alleged arbitration proceeding favouring the Opposite Party number 1, herein without holding ex-parte against the petitioner. The Petitioner is not in receipt of notice about the alleged arbitration.

 

12.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which states as the Claimant Learned Advocate led the Sole Arbitrator through the pleadings and all documents, filed on behalf of the claimant; But the Learned Arbitrator did not states that what are those documents, and the contents of the pleadings has ever been placed by the claimant and the same has been considered by the arbitrator in deciding the matter before him.

 

13.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not states the facts of the financial availability of the petitioner, and subsequently did not give any calculation of the interest accrued thereon and the adjustment of the payment made by the petitioner to the claimant.

 

14.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not refer any clause under the said Loan Agreement no. TCFCE0543000010676678, dated 29.10.2019, by which the arbitration proceeding has ever been initiated by the said Sole Arbitrator.

 

15.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about invoking of any particular contents, purports, and clause of the said Loan Agreement no. TCFCE0543000010676678, dated 29.10.2019, by which the arbitration proceeding has ever been initiated by the said Sole Arbitrator.

 

16.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about declaration of NPA of the said Loan Agreement No. TCFCE0543000010676678, dated 29.10.2019, by which the arbitration proceeding has ever been initiated by the said Sole Arbitrator.

 

17.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about the determination or termination at premature stage of the said Loan Agreement No. TCFCE0543000010676678, dated 29.10.2019, by which the arbitration proceeding has ever been initiated by the said Sole Arbitrator.

 

18.                That the said impugned arbitral award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about the payment made by the petitioner during the arbitration proceeding to the claimant; Persistently, the entire arbitration proceeding has been initiated, proceeded, and concluded, keeping in dark the petitioner, herein.

 

19.                That the Opposite Party no. 1, and the Opposite Party number 3, herein, take much care in not providing any information of the arbitration proceeding to the petitioner, on occasion prior to the 12th September’ 2024.

 

20.                That the said impugned award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, did not afford the reasonable opportunity of hearing to the petitioner, as the same has been persuaded by the Sole Arbitrator appointed by the Claimant.

 

21.                That the impugned arbitral award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com, which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower, which determined that the Petitioner and the Opposite Party no. 2, herein jointly and severally, will pay to the Claimant, a sum of Rs. 12,75,000/- with interest thereon @ 9.95 % on and from 09-02-2022, till realization. The said Award dated 2nd September’ 2024, declared that the claimant namely Tata Capital Financial Services Limited is the owner of One Komatsu India Private Limited – CEQ, Model PC 71 Bearing Engine No. N221578 and Machine Serial No. N221578, along with its accessories thereon and is entitled to the possession thereof. The said award signed and delivered on the 2nd September’ 2024, at Kolkata, by the Learned Sole Arbitrator Advocate Kaushik Banerjee.

 

22.                That the Petitioner states and submits that the very commencement of the said Arbitration proceeding requires that a notice has to be served by invoking Arbitration since the Arbitration presupposes existence of disputes and the disputes means assertion of right of a party followed by denial. It has been repeatedly urged by the petitioner that no notice has ever been served by the opposite party number 1, herein. The opposite party number 1, herein never served any notice invoking for the arbitration, did never serve a copy of Claim and did never informing the selection of the opposite party number 3, as a sole arbitrator. Thus it is a clear case of there being lack of consenciousadidem between parties in absence the Arbitration cannot be proceeded with as there is no invocation.

 

23.                That the Petitioner states and submits that as it appears from the said impugned arbitral award dated 28th March’ 2023, that without any proof of services of the notices on the petitioner, the arbitration proceeding has been initiated, proceeded, and concluded.

 

24.                That the Petitioner states and submits that as it appears from the said impugned arbitral award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, that without any disclosure of document, and the pleading, the said arbitration proceeding has been proceeded and subsequently concluded at the behest of the claimant, presumably.

 

25.                That the Petitioner states and submits that as it appears from the said impugned arbitral award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about the determination or termination at premature stage of the said Loan Agreement No. TCFCE0543000010676678, dated 29.10.2019, by which the arbitration proceeding has ever been initiated by the said Sole Arbitrator.

 

26.                That the Petitioner states and submits that as it appears from the said impugned arbitral award dated 2nd September’ 2024, in Agreement No. TCFCE0543000010676678, dated 29.10.2019, which did not speak about the payment made by the petitioner during the arbitration proceeding to the claimant; Persistently, the entire arbitration proceeding has been initiated, proceeded, and concluded, keeping in dark the petitioner, herein.

 

27.                That in the given facts, your petitioner reasonably apprehends that the opposite party number 1, may take possession of vehicle at any time, therefore the petitioner genuinely seeks stay on impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower.

 

28.                That unless the Learned Court grant stay on impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower, till disposal of the application under Section 34 of the Arbitration and Conciliation Act, 1996, your petitioner will highly prejudice and suffer with irreparable loss and injury, thereof.

 

29.                That the preponderance of balance of convenience and inconvenience are in favour of the Petitioner and the Opposite Parties will not prejudice.

 

30.                This application is made bonafide and for the ends of justice.

 

It is therefore prayed that your Honour would graciously be pleased to stay on the impugned arbitral award dated 2nd September’ 2024, passed in Agreement No. TCFCE0543000010676678, dated 29.10.2019, by the Learned Sole Arbitrator Advocate Kaushik Banerjee, having office at Premises being No. 6, Old Post Office Street, Top Floor, Room No. 10, Kolkata - 700001, as well as “NICCO HOUSE”, 2, Hare Street, Room No. 20, 6th Floor, Koolkata – 700001, Mobile : 9874951977 / 9748310956, Email : kaushikbanerjee04@yahoo.com which has been communicated through Registered Post being RW156452494IN, booked on 10-09-2024, and Delivered on 12-09-2024, to the Borrower, from giving any effect or further effect and or interfering with the possession of the Vehicle of the petitioner, in any manner whatsoever, till the disposal of the present application under Section 34 of the Arbitration and Conciliation Act, 1996; And to pass such other or further order or orders as to your Honour may deem, fit, and proper for the end of justice.

And for this act of kindness, the Appellant, as in duty bound shall ever pray.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFIDAVIT

 

I, Sambhu Mondal, Son of _______, aged about ______years, by faith Hindu, by Occupation Business, residing at Village – Shaliyada, Post Office - Amarkanan, Police Station - Gangajalghati, District - Bankura, Pin Code – 722133, West Bengal, do hereby solemnly affirm and say as follows:

 

1.       That I am the Petitioner in the present application under Section 34 of the Arbitration and Conciliation Act, 1996 and I am well acquainted with the facts and circumstances of the case. I am competent to swear this affidavit.

 

2.                  That the statements made in paragraph No. 1, 2, 3, 4, 5, & 7, are true to my knowledge and those made in paragraphs   6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, & 26, are true to my information derived from the records of the case and rest paragraphs are my respectful submission before this Learned Court.

 

 

 

Prepared in my office                           The deponent is known to me

 

                 Advocate                                Clerk to: Mr.                                                                                                                        Advocate

Solemnly affirmed before me

on this the       day of December, 2024.

 

I certify that all annexures

are legible.

 

               Advocate.

NOTARY

 

 

1 comment: