Bogus Arbitration in India

Bogus Arbitration in India.

       Recently, it came to notice during study of dozens of Legal cases especially relating to Arbitration by Financial companies, including big names like - H**C/ H*B/ I****b***S/ T**a/ , It was observed that. When a borrower who had defaulted in paying some installments for loan taken for purchase of Vehicles / trucks / tractors etc. And the said vehicle is seized forcibly, without any notice, and then some exorbitant amount is claimed after forcible seizure and if borrower fails to pay that amount , the vehicle is sold at throw away price and then the deficit amount is again claimed from the poor borrower.. This is absolute tyranny and injustice.. That, when the notice of recovery of deficit amount comes to borrower , he at best approach the Consumer Forum. There the first defence of Finance companies is that - they had already commenced Arbitration, and Final award is already passed " prior to Filing of Consumer complaint". This is a sheer trick, played by finance companies.

      In such case- the finance company only submits a copy of Arbitration award and an affidavit to make it feel like real. In case, the Borrower is confident that there was no such award or proceedings till date if filling if Consumer case, then the award needs to be disputed as non- est and nullity, and the finance company be asked to produce complete record of alleged Arbitration Proceedings Before the forum. Especially notices, acknowledgement of Notice under sec. 21, of Arbitration Act. Proper conduct of arbitration hearings, notices from Arbitrator etc. So that the forum doesnot reject the case , in view of some bogus and back dated Arbitration Awards,which are very much available to the finance companies. A person called Anis Ah***, who operate from Mumbai / Chennai /Delhi, do sign and prepare back- dated , Interim and Final awards as per requirement of Finance companies. It is a fraud on judicial system. But takes time to detect.

      In such cases, the Borrower must not let the Consumer case dismiss, and seek time from the forum, to approach District Judge under sec. 34 for getting the bogus and false award set - aside.. Once that is done in 6-8 months period, the Consumer case can resume. So don't let your claims before forum be rejected, till then..