Kotak Mahindra Prime Limited v. Akash Choudhary & ANR.
$~4 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1924/2025 KOTAK MAHINDRA PRIME LIMITED .....Petitioner Through:
Mr. Ajay Uppal, Advocate (through VC) versus AKASH CHOUDHARY & ANR.
.....Respondents Through:
None.
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
O R D E R
% 27.02.2026 1.
None appears for the respondents, when the matter is called out. 2.
This Court notes that vide order dated 10th February, 2026, this Court had recorded as follows:
"1. The Office Noting shows that respondent nos. 1 and 2 have been served through E-mail by the Registry.
2. There are only two respondents. Accordingly, service upon the respondents stands completed.
3. None appears for the respondents when the matter is called out.
4. Accordingly, let replies be filed by the respondents, within a period of 10 days, from today.
5. Rejoinder thereto, if any, be filed within a period of 02 days, thereafter."
3.
Thus, learned counsel appearing for the petitioner submits that an Arbitrator be appointed.
4.
The present petition has been filed under Section 11(6) of the ARB.P. 1924/2025 Page 1 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
Arbitration and Conciliation Act, 1996 ("Arbitration Act") seeking appointment of a Sole Arbitrator for adjudication of disputes between the parties, arising out of the Loan Agreement dated 30th July, 2022. 5.
Learned counsel for the petitioner submits that the respondents approached the petitioner, seeking grant of a vehicle loan and hypothecation financing facility. Subsequently, the parties entered into a Loan Agreement dated 30th July, 2022, whereby, the petitioner had granted a loan of Rs. 13,73,125/- to the respondents.
6.
Learned counsel for the petitioner further submits that as per the terms and conditions of the Loan Agreement, the respondents agreed to pay the said loan amount, in 60 Equated Monthly Installments ("EMIs") of Rs. 28,388/- each.
7.
He submits that the respondents in order to secure the loan amount, thereupon, hypothecated the vehicle bearing Registration No. UK07FF4111, in favour of the petitioner. As per the mutually agreed terms of the Loan Agreement, the respondents are not entitled to encumber or transfer the said vehicle nor part with the possession thereof. 8.
He further submits that the respondents failed to adhere to the terms of the repayment of the Loan Agreement and thus, defaulted and neglected to pay the various EMIs. Consequently, the petitioner was constrained to recall/foreclose the loan facility granted to the respondents, by way of the Loan Recall cum Demand Notice and Invocation Notice dated 11th September, 2025 ("Invocation Notice").
9.
Learned counsel for the petitioner submits that the Loan Agreement dated 30th July, 2022 contains an Arbitration Clause, i.e., Clause 32. 10.
It is further submitted that the petitioner had also invoked the ARB.P. 1924/2025 Page 2 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
Arbitration Clause by the aforesaid Invocation Notice issued as per Section 21 of the Arbitration Act. However, despite the receipt of the Invocation Notice, the respondents have failed to give their consent to the appointment of the Arbitrator. Hence, the present petition came to be filed. 11.
This Court notes that the Loan Agreement dated 30th July, 2022 entered into between the parties consists of an Arbitration Clause, i.e., Clause 32, which is reproduced as under:
"32. Arbitration:
All disputes, differences and/or claim arising out of these presents or in any way touching or concerning the same or as to constructions, meaning or effect hereof or as to the rights and liabilities of the parties hereunder shall be settled by arbitration to be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the arbitration of a sole arbitrator to be nominated by the LENDER. In the event of death, refusal, neglect, inability or incapability of a person so appointed to act as an arbitrator, the LENDER may appoint a new arbitrator. The award of the arbitrator shall be final and binding on all parties concerned. The arbitration proceedings shall be conducted in English language and held at the place more particularly mentioned in the SCHEDULE-I of the present agreement hereunder."
12.
This Court further notes the Schedule-I of the Loan Agreement, which provides for the address details of the parties, as well as the loan amount of Rs. 13,73,125/-. The said Schedule - I of the Loan Agreement, is reproduced as under:
ARB.P. 1924/2025 Page 3 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
13.
A perusal of the aforesaid Schedule-I shows that even though the Loan Agreement has been executed in Dehradun, however, the stamp on the same mentions the place of the arbitration as Delhi. ARB.P. 1924/2025 Page 4 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
14.
This Court further notes that all the parties, i.e., the petitioner, as well as the respondents, are residents of Delhi. In this regard, the Memo of Parties, as placed before this Court, is reproduced as under: ARB.P. 1924/2025 Page 5 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
15.
This Court also takes note of the fact that Invocation Notice dated 11th September, 2025 was issued by the petitioner invoking the Arbitration Clause in terms of Section 21 of the Arbitration Act. The said Invocation Notice along with proof of service, has been placed before this Court. 16.
This Court is satisfied that there exists a valid Arbitration Clause between the parties and there are disputes between the parties, which shall be adjudicated by an Arbitrator. Accordingly, this Court finds no impediment in appointment of an Arbitrator.
17.
The approximate claim, as raised by the petitioner, is to the tune of Rs. 15,81,718.70/-.
18.
At this stage, learned counsel appearing for the petitioner submits that the arbitration under the aegis of Delhi International Arbitration Centre ("DIAC").
19.
Accordingly, the following directions are issued, in this regard: i) Ms. Sandhya Gupta, Advocate (Mob: +91- 9312280288) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. ii) The arbitration proceedings shall be held under the aegis and Rules of DIAC, Delhi High Court, Sher Shah Road, New Delhi. 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 Arbitration Act prior to entering into the reference. In the event of any impediment to the Arbitrator's appointment on that Count, the parties are given liberty to file an appropriate application before this Court.
v) It shall be open to the respondent to raise counter-claims, if any, in ARB.P. 1924/2025 Page 6 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
arbitration proceedings.
vi) 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/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned Arbitrator.
vii) The parties shall approach the learned Arbitrator within two (02) weeks from the date of appointment of the Arbitrator. 20.
It is made clear that this Court has not expressed any opinion on the merits of the case.
21.
Accordingly, the present petition is disposed of in the aforesaid terms. 22.
The Registry is directed to send a copy of this order to the learned Sole Arbitrator, as well as, Secretary, DIAC for information and compliance.
MINI PUSHKARNA, J FEBRUARY 27, 2026 ak ARB.P. 1924/2025 Page 7 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.