Karnataka High Court
Caterpillar Financial Services India ... vs Sarolia Mining And Engineering Company on 13 June, 2023
Author: R Devdas
Bench: R Devdas
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NC: 2023:KHC:20180
CMP No. 626 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF JUNE, 2023
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
CIVIL MISC. PETITION NO. 626 OF 2022
BETWEEN:
CATERPILLAR FINANCIAL SERVICES INDIA PRIVATE
LIMITED,
A COMPANY INCORPORATED AND REGISTERED,
UNDER THE COMPANIES ACT, 1956,
HAVING ITS REGISTERED OFFICE AT:
6TH FLOOR, TOWER 'B', PRESTIGE SHANTINIKETAN,
THE BUSINESS PRECINCT, WHITEFIELD MAIN ROAD,
BENGALURU,
KARNATAKA - 560 048.
...PETITIONER
(BY SRI. RISHABHA RAJ THAKUR & RAGHUNATH J.,
ADVOCATES)
Digitally signed
by JUANITA
THEJESWINI AND:
Location: HIGH
COURT OF
KARNATAKA 1. SAROLIA MINING AND ENGINEERING COMPANY
(PROP: CHETAN KUMAR DIXIT)
00, HANUMAN NAGAR, ASHRAM,
HANUMANPURA MANDRAYAL ROAD,
KARAULI, RAJASTHAN - 322 241,
PHONE NO. 7800000222.
EMAIL- [email protected]
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NC: 2023:KHC:20180
CMP No. 626 of 2022
2. MEGHA DIXIT,
W/O RAJENDRA SHARMA,
WARD NO.6, BUDANA,
JHUNJHUNUN, BUDANA,
RAJASTHAN - 333 023.
...RESPONDENTS
(RESPONDENTS SERVED - UNREPRESENTED)
THIS CIVIL MISC. PETITION IS FILED UNDER
SEC.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 25/07/2021 VIDE ANNEXURE-B
EXECUTED BETWEEN THE PETITIONER 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 -3- NC: 2023:KHC:20180 CMP No. 626 of 2022 difference between the parties herein in terms of Clause 21 of the Loan & Security Agreement dated 25.07.2021 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.808-70002037 dated - 25.07.2021, under which the respondents have availed a loan amount of Rs.54,40,000/- from the petitioner company. The loan was to be repaid in 24 EMIs at the rate of Rs.2,59,674/- per month commencing from 15.09.2021 and ending on 15.07.2023.
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 -4- NC: 2023:KHC:20180 CMP No. 626 of 2022 18.02.2022 seeking repayment of the outstanding dues. 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.51,21,467/- 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 25.07.2021 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 -5- NC: 2023:KHC:20180 CMP No. 626 of 2022 company has fulfilled the requirements under Section 11(4) of the Arbitration and Conciliation Act.
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 Murari Ashok Parashuram, 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.-6-
NC: 2023:KHC:20180 CMP No. 626 of 2022
(c) The office is directed to communicate this order to the Arbitration and Conciliation Centre and to Shri Murari Ashok Parashuram, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012.
Sd/-
JUDGE rv