Mahindra And Mahindra Financial Services Limited v. Tarini Chudi Mahal

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO. 104 OF 2025 Mahindra And Mahindra Financial Services Limited

...Petitioner(s)

Versus

Tarini Chudi Mahal & Ors.

...Respondent(s)

Digitally signed by SHRADDHA KAMLESH TALEKAR Date:

2025.04.26 13:03:31 +0530 SHRADDHA KAMLESH TALEKAR Mr. Zerick Dastur a/w. Khushil Shah and Jennifer Sanjana I/b Zerick Dastur Advocates, for Petitioner.

None for Respondents.

CORAM : SOMASEKHAR SUNDARESAN, J.

Date : April 9, 2025 P. C.

1.

This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking interlocutory protective reliefs in connection with disputes and differences relating to an Agreement dated November 9, 2022 ("Agreement"). Clause 24.11 of the Agreement (found at Pages 82-83 Petition) contains the arbitration clause, which, in the interest of brevity, is not extracted herein.

2.

The Respondents have evidently committed a default in servicing the loan. It is seen from the record that a notice in this regard was issued on October 21, 2024. Learned Counsel for the Petitioner submits that the

amount due under the Agreement, as claimed by the Petitioner from the Respondent is to the tune of Rs. 27,74,075,94/-. It is seen from the record that this Petition has been served on the Respondents, but the Respondents have not entered appearance.

3.

Learned Counsel for the Petitioner submits that there is an evident default, and despite issuance of a notice(s), there is no response at all, necessitating the protection of the subject-matter of the arbitration agreement. It is submitted that the subject-matter of the arbitration agreement runs the risk of being dissipated and denuded, rendering the very arbitration infructuous. Consequently, urgent interlocutory relief is sought. 4.

Since despite notice, the Respondents have not appeared, Learned Counsel seeks reliefs sought in prayer clauses (a), (c) and (d). A case has been made out for grant of ad interim reliefs, and moulding, if any, is as considered appropriate by this Court. Such ad interim reliefs would apply pending the consideration of further interim relief by the Arbitral Tribunal that would be constituted in the matter:

(a) The Respondents are hereby restrained, whether by themselves, or their servants, assigns, employees, agents, representatives, officers or any other person/s claiming through or under them or under any instrument, whatsoever, from in any manner selling, alienating,

transferring, parting with the possession of, encumbering, dealing with, disposing off or creating any third party rights or interest of whatsoever nature and in any manner whatsoever in respect of their Mortgaged Property i.e., "Equitable Mortgage by depositing the title deed of the property i.e. Immovable Property comprised of all t/tat piece and property of Gangadhar Sahu S/o- Baid/tar Sahu - Residential Property : Bearing Mutation Property bearing consolidation Settlement Khata No-223, Plot No. 1639, Area Ac.0.2S00 dec .. Status - Stitiban Kisam - G. B. and Plot No. 160S, Area Ac 0.1700 dec, Status - Stitiban, Kisam Sarad Jala Do Fasali I of Mouza Markona, Tahasil Simulia, SRO- Simulia, P.S.:-Simulia, P.S. No. 125 District -Bangalore.";

(d) The Respondents shall disclose on affidavit all their respective movable and immovable assets including bank accounts and details of Savings Deposit (referred to in MFA and Sanction Letter) which are owned by them or in which they have any rights or interests; (g) The bank accounts being (i) Union Bank of India, Branch - Markona bearing account no. 779801010000070 and IFSC Code UBIN0577987 and (ii) other Bank accounts as disclosed pursuant to prayer (d), shall be subject to a prohibition from the said Banks on debits to the extent of a sum of Rs. 27,74,075.94/- (Rupees Twenty-Seven Lakhs Seventy-Four Thousand Seventy-Five and Ninety-Three Paise only). 5.

It is made clear that should the Respondents be desirable of varying, altering or vacating the ad-interim relief granted hereby, the Respondents may appear before the Arbitral Tribunal, and present its say.

6.

Learned Counsel for the Petitioner undertakes that an application under Section 11 of the Act will be filed within a period of one week from the date of upload of this order on the website of this Court to enable time to invoke arbitration afresh and file the same. In these circumstances list this Petition along with the Section 11 Application on May 7, 2025. 7.

All actions required to be taken pursuant to this order, shall be taken upon receipt of a downloaded copy as available on this Court's website. [ SOMASEKHAR SUNDARESAN, J.]