Through: Ms.M Venmani with Mr.C Solomen Advocates v. MAGMA FINCGRP LIMITED(ASSIGNEE OF M/S.GE MONEY FINANCIAL SERVICESPRIVATE LIMITED, &ORS

1. The petitioners have filed the present petitions under Section 34 ofthe Ai-bitration & Conciliation Act, 1996(hereinafter referred to as the *Act'), impugning an arbitral award dated 09.12.2016 (hereafter 'the impugned award'). The impugned award was rendered in the contextofdisputesin relationto aloan agreementdated 29.06.2007. 2017:DHC:9114

2. The respondents had instituted the arbitral proceedings as it alleged thatthe petitioners had failed and neglected to repay the loan in terms ofthe said loan agreement.

3. The principal controversy involved in the present petitions is whether notices of the arbitral proceedings were served on the petitioners.

4. After some arguments, the learned counsel appearing for the respondents states, on instructions, that the respondents would be willing to accept that the impugned award be set aside, subject to an arbitrator being appointed and the parties being referred to arbitration for adjudication ofthe amount payable by the petitioners in terms of the loan agreement.

5. The learned counsel for the petitioners concur with the above condition. ^ 6. Accordingly,the impugned award is setaside. Withthe consent ofthe parties,Mr.Sanjiv Dubey,Advocate(Mobile No.9810062521) is appointed as an Arbitrator to adjudicate the disputes between the parties with regard to the amount owing by the petitioners, ifany,to the respondents. This is subject to the Arbitrator making necessary disclosures under Section 12(1) of the Act and not being ineligible under Section 12(5)ofthe Act.

7. The fees ofthe Arbitrator shall be fixed in consultation with the counselforthe parties.

8. It is clarified that the terms of reference are only restricted to quantify the amounts, if any, payable by the petitioners to the respondents in terms of the abovementioned loan agreement. It would not be open for the petitioners to raise any other technical disputes/pleas, such as the authority of officer to institute the claim against the petitioners, limitation, etc.; the reference is restricted to determining the am.ount owed by the petitioners to the respondentcompany.

9. Parties to appear before the Arbitrator on 03.05.2017 for eliciting the necessary disclosure and forfurther proceedings.

10. The petitions and the pending applications are disposed of.

VIBHU BAKHRU,J. APRIL 18,2017 P