Moneywise Financial Services Pvt Ltd v. Shree Sai Textile Through Its Partners And ORS
$~15 *
IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 1943/2024 MONEYWISE FINANCIAL SERVICES PVT LTD .....Petitioner Through:
Ms.
Mehvish Khan, Mr.
Aman Choudhary, Advs.
versus SHREE SAI TEXTILE THROUGH ITS PARTNERS AND ORS. .....Respondents Through:
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
O R D E R
% 02.04.2025 1.
This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("the Act") seeking appointment of an Arbitrator for adjudication of disputes between the parties, arising out of the Master Loan Agreement dated 31.08.2022 ("the Agreement"). 2.
The brief facts of the case are that vide the Agreement, the petitioner had advanced a loan of Rs.20,17,859/- to the respondents. 3.
The respondent No.1 is a partnership firm and is the main borrower. The respondent Nos.2 and 3 are the co-borrowers. 4.
The said loan amount was repayable into 36 installments of Rs.73,967/- each.
5.
The respondents defaulted in the repayment of the loan amount and also breached the other terms and conditions of the Agreement. 6.
Hence, the petitioner issued a Loan Recall/Termination cum Notice under Section 21 of the Act dated 23.09.2024 to the respondents. 7.
The petitioner sent the said Notice via e-mail dated 03.10.2024 and via speed post on 26.09.2024 at the e-mail address and last known The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
address of the respondents, as provided by the respondents themselves.
8.
However, the respondents have not responded to the same. 9.
The said Agreement contained arbitration clause, being Clause No.8.2, which reads as under:- "8.2 Arbitration:
Any disputes, differences, controversies and questions directly or indirectly arising at any time hereal1er between the Parties or their respective representatives or assigns, arising out of or in connection with this Agreement (or the subject matter of this Agreement), including, without limitation, any question regarding its existence, validity, interpretation, construction, performance, enforcement, rights and liabilities of the Parties, or termination ("Dispute"), shall be referred to a sole arbitrator duly appointed by the Lender. The language of the arbitration shall be English. The seat of the arbitration shall be at New Delhi and the language of proceedings shall be English. The award rendered shall be in writing and shall set out the reasons for the arbitrator's decision. The costs and expenses of the arbitration shall be borne equally by each Party, with each Party paying for its own fees and costs including attorney fees, except as may be determined by the arbitration tribunal. Any award by the arbitration tribunal shall be final and binding."
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
10.
Hence, the present petition.
11.
As per Schedule I of the Agreement, the details of borrowers contains the email address of the respondents as shreesaitextile16@gmail.com. 12.
The affidavit of service shows that the respondents have been served at the said email address.
13.
Additionally, the respondents have also been served through courier as well.
14.
On perusal, I am satisfied that the respondents have been served and despite service, there is nobody appearing on behalf of the respondents in Court today.
15.
I am also satisfied that there are disputes pending between the parties and the same needs to be resolved through the arbitration process. 16.
For the said reasons, the petition is allowed and the following directions are issued:- i.
Mr. Varun Chopra, Advocate (Mob. No. 9811851711) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.
ii.
The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi ("DIAC").
iii.
The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018.
iv.
The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
v.
It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counterclaims and merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator. vi.
The parties shall approach the learned Arbitrator within two weeks from today.
17.
The present petition is disposed of in the aforesaid terms. JASMEET SINGH, J APRIL 2, 2025 / (MS) Click here to check corrigendum, if any The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.