BEFORE THE ARBITRATION TRIBUNAL

CONSTITUTED BY THE CENTRE FOR ALTERNATE DISPUTE RESOLUTION EXCELLENCE

SOLE ARBITRATOR AT CHENNAI

JDF Internal Reference No. 139707 of 2023

Between

M/s. John Deere Financial India Private Limited (JDFIPL),

Non-Banking Finance company having its registered
Office at Tower XIV, Cybercity, Magarpatta City,
Hadapsar, Pune – 411013 and its Area Office at GKS Annexe,
O.No.3, N.No.20, Pycrofts Garden Road,
Next to State Bank of India Training Center,
Chennai – 600 006. .. Claimant

And

1. Uday Singh Yadav

2. Veer Bahaduran Singh
3. Shibjeet Ramesh ..Respondents

STATEMENT OF CLAIM FILED UNDER SECTION 23 OF THE

ARBITRATION AND CONCILIATION ACT, 1996

A. PARTICULARS OF THE CLAIMANT

Name and address of the Claimant:

M/s. John Deere Financial India Private Limited,

Non-Banking Finance company having its registered Office at Tower XIV, Cybercity, Magarpatta City, Hadapsar,
Pune – 411013 and its Area Office at GKS Annexe, O.No.3, N.No.20, Pycrofts Garden Road, Next to State Bank of
India Training Center, Chennai – 600 006.

B. PARTICULARS OF THE RESPONDENTS

Name and Address of the Respondents:

Name of First Respondent: Uday Singh Yadav
Father Name: Babulal
Address: 3/Ktemple,Barodiya Khairai,Shadora,Post:-Ratikheda,Dist:-Ashoknagar,Madhya Pradesh -
473330
Contact No.: 8358038870
Name of Second Respondent: Veer Bahaduran Singh
Father Name: Udesha
Address: 3/Khtemple,Barodiya ,Post:-Bagulya,Dist:-Ashoknagar,Madhya Pradesh -473330
Contact No.: 8358038870
Name of Third Respondent: Shibjeet Ramesh
Father Name: Ramesh
Address: 7,Temple,Barodiya Khairai,Shadora,Post:-Bagulya,Dist:-Ashoknagar,Madhya Pradesh -473330
Contact No.: 6261379348

Address for service of all notices : same as above

C. FACTS OF THE CASE

1. Claimant is a company incorporated under the Companies Act, 1956. The Claimant is a Non-Banking Finance
Company duly registered with Reserve Bank of India and carrying on the business of financing various models of
Agricultural equipment and Road Construction equipment manufactured and marketed by John Deere India
Private Limited and Wirtgen India Private Limited. JDFIPL extends Loan Facility across the Country to its customers,
having its registered Office at Tower XIV, Cybercity, Magarpatta City, Hadapsar, Pune – 411013 and its Area Office
at GKS Annexe, O.No.3, N.No.20, Pycrofts Garden Road, Next to State Bank of India Training Center, Chennai – 600
006.

2. The Respondents approached the Claimant and applied for financial assistance for the purchase of a John Deere
Asset (Tractor/Implement/Harvester) vide Model No.5050D.The Claimant considered the same and agreed to
grant the loan to the respondents.

3. In this regard, the Respondents availed the said loan and entered into an Agreement for Loan, Hypothecation
and Guarantee bearing Contract Number 139707 with the Claimant, the terms of which govern the said loan. The
Claimant craves the leave of this Tribunal to treat the aforesaid agreement as part and parcel of this claim
statement.

4. In terms of the agreement, the Claimant lent a sum of Rs. 600000 to the First Respondent “Borrower” for the
purchase of the said vehicle bearing Engine No.PY3029D583968 ,Chassis No. 1VY5050DELA033046 and Model No.
5050D , (collectively known as “Vehicle Details'') which amount is repayable together with interest at the rate of
15.861% in periodical installments, the details of which are set out in Schedules to the Agreement. The First
Respondent undertook to pay default interest 36% per annum in the event of default in payment of installments
until its realization. As per the agreement, the Respondents guaranteed due repayment of all amounts due and
payable to the Claimant. With the said loan, the First Respondent purchased the said vehicle with aforementioned
Vehicle Details. Other respondents stood as Co-borrower &/or Guarantor to this loan agreement.

5. On the same date, the First Respondent had also executed a Demand Promissory Note by way of collateral
security for the value of the total periodical installments, less advance installments paid if any, thereby admitting
their liability to repay the loan.

6. As per the loan Agreement, the Said Vehicle was also hypothecated in favour of the Claimant to secure all
amounts due and payable to the claimant under the said loan. Further, in the event of default of the payment the
claimant is entitled to demand surrender or repossess the said vehicle and sell the same at a public or private sale
and adjust the proceeds towards the outstanding dues.

7. As per the arbitration clause, any dispute, difference and / or claim arising out of the loan agreement or in any
way touching or concerning the same or as to construction, meaning or effect thereof or as to the rights and
liabilities of the parties under the loan agreement shall be settled by arbitration to be held in accordance with the
provisions of the Arbitration and Conciliation Act, 1996 and shall be referred to the Sole Arbitrator to be appointed
by the Claimant. The arbitration proceedings shall be held at the venue as decided by claimant and language of
arbitration shall be English. Accordingly, the Claimant has chosen Chennai as the venue of arbitration. The records
relating to the agreement are also present in Chennai and hence Chennai is the proper and exclusive jurisdiction.

8. As per the terms and conditions of the agreement the First Respondent had to pay as Equated Installment(s) in
discharge of the loan obligation. The First Respondent was very irregular in the payment and committed default in
payment despite continuous follow up and reminders sent. The liability of the other respondent/s being co-
applicant/s &/or Guarantor/s is co-extensive with that of the liability of the First Respondent.

9. Upon the event of default, the loan account is deemed to have been recalled vide letter dated 30-Aug-23 and
that the Respondent/s is/are to pay the entire outstanding amount. On the failure of the Respondents to do so,
the Claimant was therefore constrained to initiate arbitral proceedings as contemplated under the Agreement,
vide their notice of reference to arbitration dated 18 Dec 2023.

10. As on Notice to Arbitrate date 18 Dec 2023, the First Respondent as the Borrower and the other
Respondent(s) are jointly and severally liable to the Claimant to pay a sum of Rs.153820 which is payable with
further interest. The full particulars of claim are set out in Exhibit A. The Claimant also states that no part of the
claim is barred by the law of limitation.

11. As per the arbitration clause, any dispute, difference and / or claim arising out of the loan agreement or in any
way touching or concerning the same or as to construction, meaning or effect thereof or as to the rights and
liabilities of the parties under the loan agreement shall be settled by arbitration to be held in accordance with the
provisions of the Arbitration and Conciliation Act, 1996 and shall be referred to the sole arbitrator to be appointed
by the Claimant. Due to the persisting dispute regarding non-payment of dues, the Claimant was constrained to
initiate arbitral proceedings as it was the mode of dispute resolution agreed upon by the parties to the Loan
Agreement. Under the agreement, the power of appointment of arbitrator and choice of choosing venue of
arbitration is vested with the Claimant. In view of the Hon’ble Supreme Court of India laying down the law in 2019
SCC online 1517, the Claimant had opted for appointment of Arbitrator through an Institutional Arbitration of
Centre For Alternate Dispute Resolution Excellence (CADRE), ℅ Erdac Solution Pvt. Ltd. Beginest Horbor 2, #3488
14th Main Road HAL 2nd Stage, Indranagar, Bengaluru -560008, email: [email protected] and website
www.cadreodr.com. It was agreed that arbitral proceedings shall be held at the venue as decided by Claimant and
that the Claimant has chosen Chennai as the venue of arbitration. Accordingly, by the letter of reference to
arbitration of the Claimant dated 18 Dec 2023 , CADRE was requested to appoint a sole Arbitrator for adjudication
of dispute in reference under the contract referred to above and in turn CADRE has, by its letter of
acknowledgement, constituted the present Arbitral Tribunal by its letter.

D. RELIEF

That the Hon’ble Arbitrator may be pleased to pass an Award against the Respondent/s as follows :
a. Respondents to pay the Claimant a sum of Rs. 153820 as shown in the particulars of claim as set out hereunder;
together with interest at 36% p.a. from 18 Dec 2023 till date of recovery, within a period fixed by the Hon’ble
Arbitrator;

b. In default of payment of the amount awarded as per clause (a) above, within the time fixed by the Hon’ble
Arbitrator, directing repossession and sale of the Vehicle with aforementioned Vehicle Details for realization of the
amount awarded as per clause (a) above and in case of any deficit in the said proceeds, hold the respondents
personally liable for such deficiency.

c. For costs; and

d. For such further or other reliefs as the Hon’ble Arbitrator may deem fit and proper in the circumstances of the
case and render justice.

E. INTERIM RELIEF SOUGHT UNDER SECTION 17 OF THE ARBITRATION AND CONCILIATION ACT, 1996.

a. It is further submitted that the said Vehicle with aforementioned Vehicle Details is hypothecated to the
Claimant. Further as per the Agreement, in the event of default of the payment, the Claimant is entitled to
demand the surrender or repossess the said vehicle and sell the same at the public or private sale and adjust the
proceeds towards the outstanding dues. However, the Respondents are not only stalling the attempt of taking
possession of vehicle by the Claimant but also secreted the vehicle beyond the reach of the Claimant with a
malafide intention to defraud the Claimant. The said vehicle is a fast depreciating asset in value due to wear and
tear. If the said vehicle is repossessed and sold at the earliest and the proceeds adjusted towards the dues of the
Claimant, it will reduce the liability of the Respondents also correspondingly. If the said vehicle is not repossessed
and sold at the earliest, the value of the said vehicle will go down considerably in course of time and if sold, the
said vehicle would fetch only a meager price. On the other hand, if the vehicle is sold earlier, it will be in the
interests of both the Respondents and the Claimant. It is therefore in the interests of justice that an order be
passed permitting the Claimant to repossess the said vehicle and sell the same. The Claimant apprehends that the
Respondents may take the law in their own hands and attempt to prevent the Claimant from repossessing the said
vehicle and hence, it is imperative that the Claimant be permitted to take the assistance / protection of police in
this regard.

b. The Claimant has made out a prima facie case and the balance of convenience is wholly in favor of the Claimant.
The Claimant will be put to grave prejudice, irreparable loss and hardship if interim orders are not granted. On the
contrary, no such loss or hardship would be caused to the respondents if such interim orders are passed as prayed
for.

It is therefore prayed the Hon’ble Arbitrator may be pleased to permit the Claimant repossess with police
protection if required any and sell the vehicle with aforementioned Vehicle Details, which is the subject matter of
the Loan Agreement 139707 and adjust the proceeds thereof to the outstanding of the Claimant, pending disposal
of the arbitral proceedings and thus render justice.

F. DOCUMENTS RELIED UPON BY THE CLAIMANT

● Copy of Agreement for Loan, Hypothecation and Guarantee bearing 139707

● Loan Recall Notice dated 30-Aug-23
● Notice to Arbitrate dated 18 Dec 2023
● Acknowledgement from CADRE
● ExhibitA: Full particulars of Claim as per calculation attached