Delhi High Court
Hero Fincorp Limited vs S R Store And Ors on 10 January, 2022
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 10.01.2022
+ ARB.P. 594/2021
HERO FINCORP LIMITED ..... Petitioner
Through Mr. Soham Kumar and Ms. Prarthana
Singhania, Advs.
versus
S R STORE AND ORS .... Respondents
Through Ms. Tulip De, Mr. Ashish Sharma and
Mr. Varun Mohan, Advs.
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(6) of the
Arbitration and Conciliation Act, 1996 seeking appointment of sole
Arbitrator in terms of clause 13 of the Loan Agreement, executed between
the parties.
2. Petitioner is a company registered under the Companies Act, 1956
and registered with Reserve Bank of India. As per the averments made in the
present petition, respondents approached the petitioner and sought financial
assistance in the form of loan against property. Respondents represented
sufficient means to repay the proposed financial facility. Petitioner agreed to
grant financial facility to the tune of Rs.3,71,00,000/- to the respondents
vide Sanction Letter dated 29.12.2017 in the nature of loan against property.
Pursuant to the sanction of the said financial facility, Loan Agreement and
Addendum Agreement, dated 30.12.2017 were executed between the parties.
Respondents had agreed to pay interest at the rate of 9.25% per annum,
payable on monthly basis to the petitioner. It was agreed that the
respondents shall repay the financial facility within 180 months. It was
further agreed that a penal interest charge of 2.00% per month shall be
levied in case of delayed payment on the overdue amount. Subsequently, in
order to secure the financial facility, the two Memorandums of Deposit of
Title Deeds dated 30.12.2017 were executed by respondent Nos.3 and 6 and
by respondent Nos. 4 and 5, respectively, in favour of the petitioner for two
separate properties. However, respondents miserably failed to adhere to the
terms and conditions of the loan agreement and defaulted in the payment of
the loan.
3. Learned counsel for petitioner submits that petitioner served a loan
recall notice dated 02.01.2020 upon the respondents whereby the Loan
Agreement was terminated and the respondents were called upon to pay a
sum of Rs. 3,67,19,659.40/- along with the applicable interest and other
charges under the loan documents, within a period of 7 days from the receipt
of the said notice. Respondents vide their reply dated 17.01.2020 denied
executing any agreement, however, admitted the existence of the Sanction
Letter. Thereafter, petitioner invoked arbitration by notice dated 04.01.2021
to respondents. On 12.01.2021, respondents, vide their reply to the said
notice denied entering into any Loan Agreement with the petitioner.
Petitioner issued a Letter of Appointment dated 08.02.2021 to Mr. Satyam
Thareja, Advocate, appointing him as the arbitrator to adjudicate the
disputes between the parties, upon failure on the part of the respondents to
act upon the notice invoking Arbitration. Thereafter, respondents vide reply
15.02.2021 challenged the appointment on the ground that they were not
provided an opportunity of being heard before the said appointment.
4. During the course of hearing, it is submitted that petitioners issued a
letter dated 25.02.2021 to the learned Arbitrator, Mr. Satyam Thareja,
requesting him to terminate his mandate and the same was terminated
01.03.2021. Hence, the present petition has been filed.
5. On the other hand, learned counsel appearing on behalf of respondent
has disputed the claims raised in the present petition. However, learned
counsel has submitted that sole Arbitrator be appointed by this Court to
adjudicate the dispute between the parties subject to all issues to remain
open before the learned Arbitrator.
6. Accordingly, K.K.Sharma, Senior Advocate (Mobile: 9810011519)
is appointed sole Arbitrator to adjudicate the dispute between the parties.
7. The fee of the learned Arbitrator shall be governed by the Fourth
Schedule of the Arbitration and Conciliation Act, 1996.
8. The learned Arbitrator shall ensure compliance of Section 12 of
Arbitration and Conciliation Act, 1996 before commencing the arbitration.
9. The present petition stands disposed of accordingly.
10. A copy of this order be sent to the learned Arbitrator for information.
(SURESH KUMAR KAIT)
JUDGE
JANUARY 10, 2022/rk
