Karnataka High Court
Caterpillar Financial Services vs Murram Rajesh on 6 June, 2023
Author: R Devdas
Bench: R Devdas
-1-
NC: 2023:KHC:19098
CMP No. 462 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. 462 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 AND
SRI. RAGHUNATH J., ADVOCATES)
Digitally signed
by JUANITA AND:
THEJESWINI
Location:
HIGH COURT 1. MURRAM RAJESH,
OF 1-39, MORRAVANIGUDEM, GRAMAM,
KARNATAKA
VEKATAPURAM, MANDALAM
MORRAM, VANIGUDEM KHAMMAM,
TELANGANA - 507 133,
EMAIL - [email protected]
PHONE NO. 9494042735.
2. MURRAM SATYAM,
1-39, MORRAVANIGUDEM, GRAMAM,
VEKATAPURAM, MANDALAM
-2-
NC: 2023:KHC:19098
CMP No. 462 of 2022
MORRAM, VANIGUDEM
RAMACHANDRAPURAM
KHAMMAM,
ANDHAR PRADESH - 507 133.
...RESPONDENTS
(VIDE ORDER DATED: 21.07.2022,
NOTICE TO RESPONDENTS IS HELD SUFFICIENT)
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 10/06/2020 VIDE ANNEXURE-B EXECUTED
BETWEEN THE PETITIONER AND THE RESPONDENTS AND ETC.,
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 21 of the Loan & Security Agreement dated 10.06.2020 at Annexure-B. -3- NC: 2023:KHC:19098 CMP No. 462 of 2022
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.808-70000469 dated 10.06.2020, under which the respondents have availed a loan amount of Rs.23,00,000/- from the petitioner company. The loan was to be repaid in 48 EMIs at the rate of Rs.59,916/- per month commencing from 15.08.2020 and ending on 15.06.2024.
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 20.12.2021 seeking repayment of the outstanding dues. However, since the respondent did not respond, the petitioner terminated the loan agreement recalling the -4- NC: 2023:KHC:19098 CMP No. 462 of 2022 entire loan amount including the future EMIs and issued a Demand cum Termination Notice dated 20.12.2021 seeking repayment of Rs.18,18,042/- calculated as on 16.12.2021. 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 10.06.2020 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:19098 CMP No. 462 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 N.Narayan, 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 N.Narayan, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012.
Sd/-
JUDGE rv List No.: 1 Sl No.: 17