BRANCH MANAGER CHOLAMANDALAM INVESTMENT AND FINANCE CO. LTD Vs. UMASHANKAR SAHU

JUDGEMENT

(1.) This Petition is directed against the award dtd. 29/9/2021 passed by the Permanent Lok Adalat (Essential Services) Bilaspur in Case No.02/2017 whereby, the application filed by the Respondent under Sec. 22(A) of the Legal Aid Services Authorities Act, 1987 (for short 'the Act of 1987') has been allowed and the award has been passed.

(2.) At the outset, Shri Sharma submits that the Petitioners are a Company registered under the provisions of Indian Companies Act under Sec. 45 of the Reserve Bank of India Act, which is a non-banking financial institution providing financial assistance for purchase of vehicles and machineries for allied purposes. He further submits that the jurisdiction of Permanent Lok Adalat for the public utility has been well defined under Sec. 22A(b) of the Act of 1987 in which, neither financial institution nor services provided by the financier is mentioned nor any notification has been issued by the Central or State Government to include such service as public utility, therefore, the award passed by the Permanent Lok Adalat is without jurisdiction and is not sustainable. He lastly submits that the present dispute is between the Respondent and the Petitioners/Company, which is an arbitral dispute and an agreement has been executed in which, there is an arbitration clause, therefore, prays to quash the order impugned.

(3.) Shri Pali, learned Counsel for the Respondent does not dispute the legal preposition that the Permanent Lok Adalat is not having the jurisdiction to pass such an award and submits that he may be permitted to avail appropriate legal remedy available to him, against the seizure of vehicles and other grievances.