Summary: Mangal Credit wants a neutral third party to help settle a loan disagreement with Ulka Nair. Ulka claims the documents were faked, but the court says it's time for arbitration.
Mangal Credit and Fincorp Limited, a financial company, gave loans to Ulka Nair, using her bungalow as security. The disagreement is about a mortgage agreement signed in December 2020, which included a clause for resolving disagreements through arbitration.
Ulka Nair denies taking the loans, saying she never received the mortgage papers and that her signatures were faked. She even filed a police report against Mangal Credit's director, Mr. Meghraj Jain, for faking documents and cheating.
"Ulka Nair has denied going to arbitration... claiming the documents are fake."
Judge Advait M. Sethna decided the case should go to arbitration. Despite Ulka's claims of cheating, the court found enough proof, like bank statements, showing loan transactions. The judge pointed out that arbitration is the right way to sort these issues out.
"The responsibility of proving the existence of the arbitration agreement generally lies on the party wanting to use such an agreement."
The court chose Justice Naresh H. Patil as the neutral third party, dismissing Ulka's request to delay the process. The judge mentioned that arbitration can continue alongside any ongoing legal cases.
Ulka also filed a civil lawsuit to declare the mortgage papers invalid. However, the court saw this as a way to delay since the lawsuit came after the arbitration notice.
The court ruled that the arbitration process should begin, with Justice Naresh H. Patil in charge. Both parties can still present their evidence and arguments during arbitration. The court's decision highlights the importance of arbitration clauses in resolving financial disagreements.
"The Application is allowed... all rival contentions of the parties are kept open to be appropriately decided in the arbitration proceedings."
