R.D. Dhanuka JUDGMENT
R.D. Dhanuka, J.
1. By these two petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996, the Petitioner has impugned the arbitral awards, both dated 13 January 2017, thereby allowing claims made by the Respondent. By consent of the parties, both these arbitration petitions were heard together and are being disposed off by a common order. The facts giving rise to these petitions are as follows:-
ARBITRATION PETITION NO. 556 OF 2017
2. The Respondent is a Non-Banking Financial Company, incorporated under the Indian Companies Act, 1956. The petitioner is a member/subscriber/surety of the Chit Fund Scheme framed by the Respondent, under the provisions of the Chit Funds Act, 1982. It is the case of the Respondent that the Petitioner was a successful bidder for the relevant month and was paid a sum of Rs. 3,95,000, vide cheque dated 20 December 2007. The Petitioner was liable to pay the monthly installments as fixed or the reduced amount which is arrived at after holding the months bidding during the entire tenure of the scheme. It is the case of the Respondent that the Petitioner paid a sum of Rs. 2,93,500 including the dividend and still there was a balance of Rs. 2,06,500 due and payable by the Petitioner to the Respondent towards the said chit funds along with interest amount of Rs. 5,69,940, totalling to a sum of Rs. 7,76,440 since 2015.
3. The Respondent filed statement of claim before the learned Arbitrator against the Petitioner inter alia praying for an aggregate sum of Rs. 7,76,440 together with interest thereon and costs. The Petitioner filed an application under Section 16 of the Arbitration and Conciliation Act, 1996 on 7 November 2016 and filed the written statement in the month of November 2016. There was no reply filed by the Respondent to the said application filed by the Petitioner under Section 16. The Respondent filed the affidavit of evidence dated 23 November 2016 before the Arbitrator. It is the case of the Petitioner that without giving any opportunity to cross examine the said witness and also to lead evidence, the learned Arbitrator passed the award on 13 January 2017, directing the Petitioner to pay a sum of Rs. 7,76,440 with interest at the rate of 18 per cent per annum from 3 October 2015 till payment and/or realization. The Petitioner had filed his written arguments before the learned Arbitrator on 30 December 2016.
ARBITRATION PETITION NO. 557 OF 2017
4. The Petitioner and the Respondent had entered into an agreement dated 8 January 2008, which provided for an arbitration clause. It is the case of the Respondent that the Petitioner committed a default in the payment of the balance subscription. The monthly subscription of the alleged chit group was Rs. 25,000 per month for a period of 20 months. The Respondent had paid a sum of Rs. 3,75,000 to the Petitioner under the said chit group, the Petitioner being the successful bidder of the chit fund for the relevant month. The Respondent filed a statement of claim before the learned Arbitrator for a recovery of Rs. 13,38,838 with interest. The Petitioner filed an application under Section 16 of the Arbitration and Conciliation Act 1996 on 7 November 2016 and filed the written statement on 28 November 2016. The Respondent did not file any reply to the said application filed by the Petitioner under Section 16. The Respondent filed affidavit of evidence dated 20 December 2016 before the learned Arbitrator.
5. It is the case of the Petitioner that without giving any opportunity to the Petitioner t........