Delhi High Court
Hero Fincorp. Limited vs Varun Mahinder Jajoo & Ors. on 22 December, 2021
$~8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 22.12.2021
+ ARB.P. 1104/2021
HERO FINCORP. LIMITED ..... Petitioner
Through Ms.Saloni Jain, Adv.
versus
VARUN MAHINDER JAJOO & ORS. ..... Respondents
Through Md.Irshad, Adv.
CORAM:
HON'BLE MR. JUSTICE SURESH KUMAR KAIT
J U D G M E N T (oral)
1. The present petition has been filed under Section 11 of the Arbitration
and Conciliation Act, 1996 seeking appointment of an Arbitrator to
adjudicate the disputes between the parties. Pertinently, petitioner is a non-
banking financial company engaged inter alia in the business of rendering
finance/loan facilities to the borrowers.
2. According to the petitioner, pursuant to the specific representations
inter-alia with respect to adherence of the terms of repayment of the Loan
Facility, petitioner Company vide Sanction Letter bearing Reference
No.3038827 dated 22.03.2018 sanctioned a Composite Loan Facility in the
sum of Rs.5,50,00,000/- jointly in favour of the respondent Nos.1 to 4. Out
of the total sanctioned loan amount of Rs.5.50 Crores vide Loan
Account/Agreement Nos. HCFDELLAP00002323034 and
HCFDELLAP00002322747, the "First Tranche" of Rs.3,00,00,000/- and
the "Second Tranche" of Rs.2,50,00,000/- were disbursed by the petitioner
Company in favour of the Respondent Nos.1 to 4.
3. Learned counsel for the petitioner submits that a written Loan
Agreement dated 23.03.2018 was executed between the Respondent Nos.1
to 4 as Borrowers/Co-Borrowers and the Petitioner Company as Lender in
respect of the afore referred Loan Facility. The Respondent No.5 guaranteed
the due repayment of the aforesaid loan as well as adherence of the terms
conditions and covenants envisaged in the aforesaid Loan Agreement by
respondent Nos.1 to 4, in their personal and individual capacity and
consequently, executed a Deed of Guarantee 23.03.2018, in favour of the
petitioner-Company. As per the terms mutually agreed between the
respondents and the petitioner-Company, repayment of the said Loan was
secured by way of "Mortgage/Security" of immovable properties as detailed
in para no.6 of the plaint.
4. It is further submitted that since the respondents failed to adhere to the
terms of the repayment of the said loan transaction, petitioner vide notice
dated 06.07.2021, was constrained to "recall" the said loan facility and
consequently demanded the total outstanding dues from the respondents,
within seven days of the receipt of the said notice. However, the respondents
have not complied with the said notice as well.
5. Petitioner-Company invoked arbitration clause as contemplated in clause
13 of the Loan Agreement dated 23.03.2018 and in clause 32 of the Deed of
Guarantee dated 23.03.2018 and duly intimated the Respondents vide written
communication dated 27.07.2021 that it has appointed Mr. Anuj Sehgal,
Advocate, C-89, Sector-47, Noida as the Sole Arbitrator to adjudicate the
afore-referred claims/ disputes and sought their concurrence/agreement to his
appointment/nomination as the Sole Arbitrator within 30 days of the receipt of
the said communication. Despite expiry of 30 days period, from the respective
dates of receipt of the afore referred communication dated 27.07.2021,
respondents neither responded to the same nor gave any concurrence.
6. During hearing, learned counsel for petitioner has prayed that sole
Arbitrator may be appointed to adjudicate the dispute between the parties.
7. Learned counsel for respondent has objected to the averments made in
the present petition however, has submitted that the disputes are arbitrable.
8. In view of the above the present petition is allowed. Accordingly,
Mr.Justice (Retd.) S.N. Dhingra (Mobile: 9871300027) is appointed sole
Arbitrator to adjudicate the dispute between the parties.
9. The fee of the learned Arbitrator shall be governed by the Fourth
Schedule of the Arbitration and Conciliation Act, 1996.
10. The learned Arbitrator shall ensure compliance of Section 12 of
Arbitration and Conciliation Act, 1996 before commencing the arbitration.
11. The present petition stands disposed of accordingly.
12. A copy of this order be sent to the learned Arbitrator for information.
(SURESH KUMAR KAIT)
JUDGE
DECEMBER 22, 2021
ab
