Karnataka High Court
Caterpillar Financial Services vs Bhargava And Singh Transport Co on 6 June, 2023
Author: R Devdas
Bench: R Devdas
-1-
NC: 2023:KHC:19091
CMP No. 622 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
CIVIL MISC. PETITION NO. 622 OF 2022
BETWEEN:
CATERPILLAR FINANCIAL SERVICES
INDIA PRIVATE LIMITED,
A COMPANY INCORPORATED AND REGISTERED
UNDER THE COMAPNIES ACT, 1956,
HAVING ITS REGISTERED OFFICE AT:
6TH FLOOR, TOWER 'B',
PRESTIGE SHANTHINIKETAN,
THE BUSINESS PRECINCT,
WHITEFILED MAIN ROAD,
BENGALURU,
KARNATAKA - 560 048.
...PETITIONER
(BY SRI. RISHABHA RAJ THAKUR, ADVOCATE AND
SRI. RAGHUNATH. J, ADVOCATE)
Digitally signed AND:
by JUANITA
THEJESWINI 1. BHARGAVA AND SINGH TRANSPORT CO.
Location: HIGH
COURT OF 1768, MAIL MAU AIMA, WARD NO.11,
KARNATAKA SULTANPUR ROAD, RAEBARELI,
UTTAR PRADESH - 229 010,
EMAIL - [email protected]
MOBILE NO.- 94151186000.
2. RAJESH BHARGAV,
833, SOUTH JAHANABAD,
RAEBARELI,
UTTAR PRADESH - 229 001.
-2-
NC: 2023:KHC:19091
CMP No. 622 of 2022
3. SUNITA SINGH,
W/O SURYA BHAN SINGH,
VILL. PURE TRILOK SINGH,
POST KEWLPUR BARETHA,
UNCHAHAR, RAEBARELI,
UTTAR PRADESH - 229 402.
...RESPONDENTS
(NOTICE TO R2 IS H/S V/O. DATED 29.03.2023;
R1 & R3 SERVED - UNREPRESENTED)
THIS CMP IS FILED UNDER SECTION 11(6-A) OF THE
ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO I.
APPOINT A SOLE ARBITRATOR TO RESOLVE THE DISPUTES
AND DIFFERENCES AMONGST THE PARTIES IN TERMS OF
CLAUSE 21 OF THE LOAN AND SECURITY AGREEMENT DATED
03/01/2021 VIDE ANNEXURE-B EXECUTED BETWEEN THE
PETITITONER AND THE RESPONDENTS. II. GRANT SUCH
OTHER ORDER/S THAT THIS HONBLE COURT MAY DEEM FIT
ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, IN
THE INTEREST OF JUSTICE AND EQUITY.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
R.DEVDAS J., (ORAL):
This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator to resolve the dispute and difference between the parties herein in terms of Clause -3- NC: 2023:KHC:19091 CMP No. 622 of 2022 21 of the Loan & Security Agreement dated 03.01.2021 at Annexure-B.
2. Learned counsel for the petitioner submits that the petitioner is a company incorporated under the Companies Act, 1956 and is engaged in the business of financing products primarily manufactured by Caterpillar Inc. or its Affiliates, throughout India. The respondent No.1 in the capacity of borrower and the respondent No.2 in the capacity of guarantor entered into a Loan & Security Agreement "LSA" bearing No.808-70001507 dated 03.01.2021, under which the respondents have availed a loan amount of Rs.50,84,562/- from the petitioner company. The loan was to be repaid in 48 EMIs at the rate of Rs.1,30,110/- per month commencing from 15.03.2021 and ending on 15.01.2025.
3. The respondents have grossly neglected and failed to pay the EMIs and therefore violated the terms of the LSA. The petitioner was issued a demand notice dated 18.02.2022 seeking repayment of the outstanding dues. -4-
NC: 2023:KHC:19091 CMP No. 622 of 2022 However, since the respondent did not respond, the petitioner terminated the loan agreement recalling the entire loan amount including the future EMIs and issued a Demand cum Termination Notice dated 18.02.2022 seeking repayment of Rs.43,67,395/- calculated as on 14.02.2022. The respondents have not complied with the demand notice. Consequently, the petitioner issued a notice invoking the arbitration clause contained in the Loan and Security Agreement dated 03.01.2021 at Annexure-B. When the respondents did not respond for appointment of a sole arbitrator in terms of the arbitration clause, this Civil Miscellaneous Petition has been filed.
4. Though notice is served on the respondents they have remained unrepresented.
5. This Court has gone through the annexures filed along with the memorandum of Civil Miscellaneous Petition. This Court is satisfied that the petitioner company has fulfilled the requirements under Section 11(4) of the Arbitration and Conciliation Act. -5-
NC: 2023:KHC:19091 CMP No. 622 of 2022
6. In the light of the aforesaid clause of arbitration and the contentions advanced by the petitioner the following order is passed:
ORDER
(a) The petition is allowed appointing Shri Basavaraj S.Sappannavar, Retired District Judge, as the sole arbitrator to enter reference of the disputes between the petitioner and the respondents and conduct proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the said Arbitration Centre.
(b) All contentions inter se parties are left open for adjudication in the arbitration proceedings.
(c) The office is directed to communicate this order to the Arbitration and Conciliation Centre and to Shri Basavaraj S -6- NC: 2023:KHC:19091 CMP No. 622 of 2022 Sappannavar, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012.
Sd/-
JUDGE rv