See if there is unpaid remain amount the arbitrator can pass award in favor of NBFC for the refund of the amount.
See for that bajaj need to agree if bajaj agrees then you brother can mutually settle.
Arbitration by NBFC
My brother has lost everything in his business What should we do if bajaj finance nbfc filled arbitration case for non repayment of loan. Only 2 installment has missed, availed loan of 5 lac paid 3.30lk, while bajaj demanded 3.70lk How can we stop this proceedings, can arbitrator give relaxation in balance amount or he pass judgement favor to nbfc? How to refer this matter to lok adalat to settlement. Bajaj promised my brother for settlement but only taken instalments.
Asked 6 years ago in Business Law
10 Answers
Hi
You can ask your counsel to get the case transferred to lok adalat.
Yes settlement can still be made in court. Try.
Thanks
Arbitrator would pass order after considering evidence on record
2) you can make offer of one time settlement before arbitrator
3) you cannot stop proceedings
when the parties agree to arbitrate, they shall be bound by that agreement. It should therefore follow that when a party initiates arbitration proceedings.
Even if the arbitration clause is invoked and decision is given against your brother then he can prefer an appeal before the appellate court and drag on the case for quite some time and also may request the matter to be referred to lok adalat so that he will get time to settlement with waiver of interest too.
You cannot stop the arbitration proceedings that may be initiated by the NBFC but you can challenge the same in appeal because the arbitrator may not give a favorable reply to your side.
Lok adalat cases can only be taken when it's pending in court. Otherwise you need to contest the case filed or declare the person bankrupt under IBC
Dear querist,
Since the matter has reached to the arbitration and they have invoked the arbitration clause, now the matter can not be referred to lok adalat. But, during the arbitration there are ways that the matter can be settled if the response to the statement of claims is made accordingly. There demand may vary, what we are willing to pay is a afterthought. The first thing is to derive a settlement first.
You can contact me for dealing with your matter.
Regards,
Yuganshu sharma
Advocate
After 3 EMI bounce,account becomes NPA. No interest levy.
Need to pay only left amount and not as demanded by bank.
Stop paying any amount and offer one time settlement on less amount. Until not received OTS letter from bank, dont pay single penny. Same offer you can propose before arbitrator. Further bank have appointed arbitrator under laon agreement which is not valid.
1. Arbitration proceeding does not get initiated immediate after you defaulted in making the payment.
2. Even if the arbitration proceeding initiate then also you will get enough opportunity to defend your case.
3. If you indeed want to avoid the proceeding then offer them in writing with settlement plan.
1. Proceedings cannot be stopped.
2. Yes arbitrator can give relaxation in balance amount.
3. Ask arbitrator to put up the case in lok adalat for settlement by mutual consent.
4. They are just playing cheap games by promising for settlement, only way they will go for compromise is by going to lok adalat.
