Iifl Finance Limited v. Hanumant Enterprises

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION PETITION NO. 466 OF 2025 IIFL Finance Limited

...Petitioner

Versus

Hanumant Enterprises & Ors

...Respondents

Mr. Harsh Sheth, a/w Rajlaxmi Pawar, i/b MDP Legal, for the Petitioner.

None for Respondents.

CORAM

: SOMASEKHAR SUNDARESAN, J.

DATE : JULY 9, 2025 ORDER :

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 June 8, 2024 ("Agreement"). Clause 26 of the Agreement 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 Digitally signed by ASHWINI JANARDAN VALLAKATI Date:

2025.07.14 18:27:39 +0530 was issued on April 2, 2025. Learned Counsel for the Petitioner submits ASHWINI JANARDAN VALLAKATI

that the amount due under the Agreement, as claimed by the Petitioner from the Respondents is to the tune of Rs.32,00,627.20/-. 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.

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.

5.

Since despite notice, the Respondents have not appeared, Learned Counsel seeks reliefs sought in prayer clauses (A), (B) and (C). 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 temporarily restrained from selling, transferring, alienating, encumbering and/or in any manner whatsoever dealing with their assets (immovable or movable and wheresoever situated) to the extent of the amounts owed to the Petitioner;

B. The Respondents shall disclose on oath all their bank accounts and their properties and assets, whether movable or immovable or of whatsoever nature, along with details of any encumbrances and/or fetters on the same;

C. This Hon'ble Court be pleased to pass an order directing the Respondents to furnish a bank guarantee to secure the Outstanding Loan Amounts, along with further and future interest at contractual rates till the realization of the amount, sought for hereinabove;

6.

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

7.

Learned Counsel for the Petitioner undertakes that an application under Section 11 of the Act is yet to be filed but will be filed. Liberty to do so within a period of 30 days from the upload of this Order on this Court's website to enable time to invoke arbitration afresh and file the same. In these circumstances list this Petition along with the Section 11 Application on August 8, 2025.

8.

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.]