Axis Finance Limited v. Ashish Prakash

$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1296/2025 AXIS FINANCE LIMITED .....Petitioner Through:

Mr. Ankush Bhardwaj and Mr.

Pragun Bagla, Advs.

Versus

ASHISH PRAKASH .....Respondent Through:

Ms. Eshna Kumar and Mr. Vikrant Ballav Sharan, Advs.

CORAM:

HON'BLE MR. JUSTICE AVNEESH JHINGAN

O R D E R

% 26.05.2026 1.

The present petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short „the Act‟) for appointment of an arbitrator. 2.

The brief facts are that the petitioner had sanctioned and disbursed a personal loan facility to the respondent pursuant to Loan Agreement dated 31.01.2024 for an amount of Rs. 34,95,486/-. During the execution of the agreement, disputes arose between parties to the lis on account of alleged defaults in repayment of the loan amount by the respondent. The petitioner on 15.07.2025 issued a notice under Section 21 of the Act invoking arbitration under Clause 24 of the Loan Agreement. On failure to do the needful, the present petition was filed.

3.

The arbitration clause is reproduced below:

"Arbitration:

i) All and any dispute/s, differences arising out of or in The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

connection with this Agreement and/or Facility Documents and the Schedule of the Terms attached thereto, controversy or claim arising out of or relating to this Agreement and Facility Documents, including its construction, meaning, scope or validity thereof, or compliance with the provisions of the Facility Documents shall be resolved and settled, by arbitration only in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereto and shall be referred to either a Sole Arbitrator to be appointed by the Lender out of the panel of Arbitrators or shall be referred to an Arbitration Centre, an independent institution, appointed by the Lender and the Parties shall be at liberty to select the Arbitrator from the panel of the Arbitrators of Lender or the Arbitration Centre.

ii) Borrower agrees that in the event of any dispute, differences arising out of or in connection in any of the Facility Documents (such as any personal guarantees executed by the Borrower / Personal Guarantors and/or any Corporate Guarantees, Deed of Hypothecation etc.) including any additional documents executed by the Borrower or any additional facility / top-up / ad-hoc facility taken by the Borrower from the Lender herein such disputes shall be treated as a single reference to the Arbitrator.

iii) Lender shall address a notice to the Borrower suggesting the names of not more than three (3) Arbitrators.

Borrower shall either:

a) Confirm in writing acceptance of any one amongst the propose names as the Sole Arbitrator to the Lender within a period of 7 days from the date of notice; b) Convey its objection, if any, in writing to the Lender against the proposed names of the Sole Arbitrator within the aforesaid period of 7 days.

iv) However, if the Lender does not receive any response from the Borrower within the aforesaid period The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

of 7 days, the Lender shall be entitled to nominate any one person from amongst the propose three names as the Sole Arbitrator and such Arbitrator shall be treated as Arbitrator appointed by mutually by the parties. v) Borrower has given his/her/its consent for either appointment of sole Arbitrator or arbitration to be conducted by the Arbitration Centre, more particularly mentioned in Annexure I to this Agreement.

vi) The seat for such Arbitration shall be Mumbai and/or Delhi, as may be determined by the Lender and which may be administered electronically under Online Dispute Resolution (ODR), in accordance with its Dispute Resolution Rules ("Rules") of the Independent Arbitration Centre. The costs of such arbitration shall be borne by the Borrower(s). The language of the arbitration proceedings shall be English. The award, including interim award given by the Arbitrator shall be final and binding upon all the parties to this Agreement and also the Facility Documents. The provisions of this Clause shall continue to be in force in respect of any question, dispute or claim as mentioned in this Clause notwithstanding the repayment of all dues under the Facility.

vii) The parties agree to have their disputes resolved by Fast Track procedure as specified in section 29B of the Arbitration and Conciliation Act, subject to and in accordance with, the procedure which the Arbitrator may lay down from time to time to conduct Arbitration proceedings and the Sole Arbitrator or the Arbitration Centre shall conduct Arbitration Proceedings in such manner as he/it may deem appropriate as per section 29B of the said Act.

viii) If a party is required to enforce an arbitral award by legal action of any kind, the party against whom such legal action is taken shall pay all reasonable costs and expenses and attorneys‟ fees, including any cost of additional litigation or arbitration taken by the party seeking to enforce the award. The provision of The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

arbitration clause contained herein shall continue in force in respect of any question, dispute or claim as mentioned in clause above notwithstanding the repayment of Facility.

ix) The terms of Facility shall be governed by the Laws of India shall be subject to the exclusive jurisdiction of courts and tribunals in Mumbai and/or Delhi.

x) Borrower(s) hereby expressly acknowledges, agrees, confirms and admits that the Borrower(s) has fully read, verified, understood and irrevocably agreed to and accepted and delivered all the terms, conditions and provisions contained herein and the Schedule of Terms of Facility by signing this Agreement.

xi) Borrower(s) has executed this Arbitration Agreement with full knowledge and understanding of the obligations herein willingly undertaken, agreed and accepted and/or the Borrower(s) agrees that the complete terms and conditions of the terms of Facility have been explained in English or the vernacular language understood by the Borrower(s).

xii) In the event of death, refusal, neglect, inability or incapability of the person so appointed to act as an Arbitrator the Lender may appoint a new Arbitrator. 4.

Learned counsel for the respondent contends that the petition should have been filed in Mumbai as per sub-clause (vi) of the arbitration clause. 5.

Learned counsel for the petitioner submits that the petitioner is a lender and under sub-clause (vi), the seat of arbitration shall be either at Mumbai and/or Delhi, as may be determined by the lender. No further explanation is required.

6.

The arbitration clause gives leverage to the lender to choose between Mumbai and Delhi as the seat of arbitration. The contention raised by the respondent lacks merit and is rejected.

7.

Disputes have arisen between the parties for which notice dated The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

15.07.2025 was issued and the parties have agreed to settle the disputes through arbitration.

8.

Accordingly, the petition is allowed by appointing Ms. Radhika Bishwajit Dubey, Advocate (Mobile No. 9810982927) as the sole arbitrator for adjudication of the disputes which have arisen between the parties. 9.

Arbitral proceedings will be held under the aegis of Delhi International Arbitration Centre (DIAC). Fee of the Arbitrator shall be fixed as per fee schedule.

10.

Before entering upon reference, the learned Arbitrator will comply with Section 12 of the Act.

11.

It is made clear that since this Court has not expressed any opinion on the merits of the rival claims of the parties and it will be open for the parties to file their respective claims/counter claims before the learned Arbitrator which will be considered in accordance with law. 12.

A copy of this order be forwarded to the learned Arbitrator for information.

AVNEESH JHINGAN, J MAY 26, 2026/Pa The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.