Appellants, Sri Lakshmi Hotel Pvt. Limited and its Managing Director, V.S. Palanivel, borrowed INR 1.57 Crores from Sriram City Union Finance Ltd. (an NBFC) through two loan agreements in 2006, with an interest rate of 24% p.a. The purpose of the loan was to clear a pre-existing defaulted bank loan. After initial payments, the appellants defaulted, and a cheque issued for settlement bounced. Arbitration was invoked, and the arbitrator awarded a sum of INR 2,21,08,244/- with 24% p.a. interest from the claim filing date till realization. This award was upheld by a Single Judge and a Division Bench of the Madras High Court. Subsequently, the NBFC initiated CIRP against the corporate debtor (Appellant no.1), which led to liquidation proceedings as no resolution plan was
…The appeal arises from the dismissal of an original side appeal under Section 37 of the Arbitration and Conciliation Act, 1996 by the Division Bench of the High Court of Judicature at Madras dated 07.01.2020.
This affirmed the order of the Single Judge dismissing a petition under Section 34 of the Act, 1996, which challenged an arbitral award.
Appellant no.1, M/s Sri Lakshmi Hotels Pvt. Limited, is a Private Limited company, and Appellant no.2, V.S. Palanivel, is its Managing Director.
Respondent no.1, Sriram City Union Finance Ltd., is a Non-Banking Financial Company (NBFC).
Respondent no.2, Mr. K. Balasubramanian, a retired District Judge, was appointed as the arbitrator.
…Sign in to view the parties.
Appellant no.1 (through appellant no.2)…
Appellant no.2 obtained…
Appellants, Sri Lakshmi Hotel Pvt. Limited and its Managing Director, V.S. Palanivel, borrowed INR 1.57 Crores from Sriram City Union Finance Ltd. (an NBFC) through two loan agreements in 2006, with an interest rate of 24% p.a. The purpose of the loan was to clear a pre-existing defaulted bank loan. After initial payments, the appellants defaulted, and a cheque issued for settlement bounced. Arbitration was invoked, and the arbitrator awarded a sum of INR 2,21,08,244/- with 24% p.a. interest from the claim filing date till realization. This award was upheld by a Single Judge and a Division Bench of the Madras High Court. Subsequently, the NBFC initiated CIRP against the corporate debtor (Appellant no.1), which led to liquidation proceedings as no resolution plan was
…The appeal arises from the dismissal of an original side appeal under Section 37 of the Arbitration and Conciliation Act, 1996 by the Division Bench of the High Court of Judicature at Madras dated 07.01.2020.
This affirmed the order of the Single Judge dismissing a petition under Section 34 of the Act, 1996, which challenged an arbitral award.
Appellant no.1, M/s Sri Lakshmi Hotels Pvt. Limited, is a Private Limited company, and Appellant no.2, V.S. Palanivel, is its Managing Director.
Respondent no.1, Sriram City Union Finance Ltd., is a Non-Banking Financial Company (NBFC).
Respondent no.2, Mr. K. Balasubramanian, a retired District Judge, was appointed as the arbitrator.
…Appellant no.1 (through appellant no.2)…
Appellant no.2 obtained…