[Cites 6, Cited by 0]
Delhi High Court
Asia Shipping International Transport ... vs Mr Abdul Salam Khan on 13 April, 2026
$~26
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 13.04.2026
+ O.M.P.(I) (COMM.) 71/2026 & I.A. 8888/2026
ASIA SHIPPING INTERNATIONAL TRANSPORT
PRIVATE LIMITED .....Petitioner
Through: Mr. Samudra Sarangi, Ms.
Saloni Jain, Ms. Panchi
Agarwal and Ms. Navya Nanda,
Advocates.
versus
MR ABDUL SALAM KHAN .....Respondent
Through: Mr. Brijesh Kumar Sharma and
Ms. Payal Gupta, Advocates.
CORAM:
HON'BLE MR. JUSTICE HARISH VAIDYANATHAN
SHANKAR
% JUDGEMENT (ORAL)
HARISH VAIDYANATHAN SHANKAR, J.
1. The present Petition has been filed under Section 9 of the
Arbitration and Conciliation Act, 19961, seeking the following
reliefs:-
"(a) Direct the Respondent to deposit the Outstanding Liability of
INR 2,82,20,063 (Indian Rupees Two Crore eighty two lakh
twenty thousand and sixty three) which includes the principal
amount of INR 2,13,18,344 (Indian Rupees Two Crore
thirteen lakh eighteen thousand three hundred and forty four)
along with the interest of INR 69,01,719 (Indian Rupees
Sixteen Nine lakh one thousand seven hundred and nineteen)
calculated at the rate of 24% p.a. till 2 February 2026, in an
interest bearing deposit before this Hon'ble Court till the
conclusion of arbitration proceedings between the parties;
(b) In the alternate to prayer (a), direct the Respondent to furnish
an unconditional bank guarantee for the sum of INR
2,82,20,063 (Indian Rupees Two Crore eighty two lakh
Act
O.M.P.(I) (COMM.) 71/2026
16:18:37
twenty thousand and sixty three) in favour of the Petitioner,
which can be encashed upon appropriate directions from this
Hon'ble Court;
(c) Restrain the Respondent, his agents, servants, or anyone acting
on his behalf from selling, transferring, alienating, disposing
of, creating third-party rights, or encumbering any of his
movable or immovable assets, bank accounts, and
receivables, including but not limited to the business assets of
Heritage Farms, till the final disposal of the arbitration
proceedings;
( d) Direct the Respondent to file a detailed affidavit disclosing all
his assets his movable and immovable assets, including but
not limited to his bank accounts, investments, and
receivables;
(e) Pass ex-parte ad-interim orders in reference to prayers (a) to
(d) mentioned above;
(f) Award costs of this petition to the Petitioner; and
(g) Pass such other and further orders as this Hon'ble Court may
deem fit and proper in the facts and circumstances of the
case."
2. Though the learned counsel appearing on behalf of the
Respondent submits that a Reply to the present Petition came to be
filed on 11.04.2026, the same does not form a part of the record.
3. A physical copy of the same, which was served in advance to
the Petitioner, has been handed over across the bar by the learned
counsel for the Petitioner.
4. The same is confirmed to be the copy of the Reply as filed by
the Respondent, and the Registry is directed to ensure that the same is
taken on record.
5. Learned counsel appearing on behalf of the Respondent objects
to the reliefs as sought for on the ground that the present proceedings
are in the nature of recovery proceedings and the same are not
permissible under Section 9 of the Act.
O.M.P.(I) (COMM.) 71/2026
16:18:37
6. He further contends that there is no collateral security
mortgaged with the Petitioner, and therefore, the reliefs in respect of
the movable and immovable assets cannot be granted.
7. Per Contra, learned counsel for Petitioner submits that the
proceedings under Section 9 of the Act are intended to ensure that the
subject matter of the disputes as between the parties is protected.
8. She submits that the objections of the Respondent are misplaced
and the reliefs as sought for are of such an emergent nature that they
need to be granted in the present case. She submits that since the
Respondent is in the business of perishable goods, and therefore, in
the event that the reliefs as sought for are not granted i.e., protecting
the amounts as sought for in the present Petition, the Respondent
would take steps to dissipate the subject matter of the dispute.
9. This Court has heard learned counsel appearing on behalf of the
parties and is of the opinion that under Section 9 of the Act, reliefs for
the preservation and custody of the goods are clearly maintainable,
and the objections of the learned counsel for the Respondent to the
contrary are rejected.
10. However, learned counsel appearing on behalf of the parties are
ad idem that the disputes as between the parties can be referred to
arbitration in terms of the Arbitration Clause of the Credit Facilities
Application dated 22.07.2024. The dispute resolution clause, being
Clause 11, is reproduced hereunder:
"All Disputes and matters related hereof shall be subject to the
exclusive jurisdiction of the courts at New Delhi only and any
violations hereof by me/us shall be at our entire risk, loss and
expense. Notwithstanding the same, in the event of dispute or
difference of any kind whatsoever arising out of or in connection
with this agreement, shall be referred to arbitration to be conducted
in accordance with the provisions of the Arbitration and
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Conciliation Act 1996. The arbitral tribunal shall consist of the sole
arbitrator to be mutually decided by the Parties viz., yourselves and
us. The award of arbitration shall be final and binding on the
Parties. The arbitral proceedings shall be conducted in English
language."
11. This Court is of the view that there is no impediment to the
Court in appointing a Sole Arbitrator in terms of the said clause for
the purpose of adjudication of the disputes as between the parties. The
parties herein jointly waive off their right to formally issue a legal
notice under Section 21 of the Act as well as the statutory requirement
of filing a Petition under Section 11 of the Act for the appointment of
an Arbitrator.
12. Material on record indicates that the approximate value of the
disputes as between the parties is Rs. 2.82 Crores.
13. In view of the foregoing, this Court is of the considered opinion
that the matter be referred to arbitration by a Sole Arbitrator for the
purpose of the resolution of disputes between the parties.
14. Accordingly, this Court hereby requests Mr. P.V. Yogeswaran,
Advocate (Mobile No. 9810622382), to enter upon the reference and
adjudicate the disputes inter se the parties.
15. The learned Sole Arbitrator may proceed with the arbitration
proceedings, subject to furnishing to the parties the requisite
disclosures as required under Section 12(2) of the Act within a week
of entering the reference.
16. All rights and contentions of the parties are kept open, to be
decided by the learned Sole Arbitrator on their merits, in accordance
with law.
17. Needless to state, nothing in this order shall be construed as an
expression of opinion of this Court on the merits of the controversy.
O.M.P.(I) (COMM.) 71/2026
16:18:37
18. The present Petition under Section 9 of the Act shall be treated
as an Application under Section 17 of the Act, and appropriate
directions may be passed by the learned Arbitrator after entering upon
the reference.
19. This Court is of the view that though the interim reliefs as
sought for in Prayers A, B and D need not be granted at this stage
however, a limited relief in terms of Prayer C to the extent that in the
event that the Respondent or his agents, servants or anyone acting on
his behalf sell, transfer or alienate or create any third party rights in
respect of any of the movable and immovable assets of the
Respondent, then the amounts that are realised as a result of the said
sale, transfer or alienation to the extent of Rs. 2,82,20,063/- would be
deposited in the name of the learned Registrar General, Delhi High
Court.
20. In terms of the Circular No. 326/C-11/Cash-II/DHC dated
10.04.2026, the said amount shall be deposited preferably through
Online/NEFT/RTGS mode into the designated account of this Court,
the particulars whereof are as follows:
Bank Name: UCO Bank
Account Name: DELHI HIGH COURT PDC
ACCOUNT
Account Number: 15530110030226
IFSC Code: UCBA0001553
SWIFT Code: UCBAINBB242
21. Upon making the deposit, the Respondent shall furnish the
requisite details to the Registry, including the date of order, case
number, cause title, UTR number, date of deposit, amount deposited,
and particulars of the depositor, in compliance with the aforesaid
circular. The amount so deposited shall be placed before the learned
O.M.P.(I) (COMM.) 71/2026
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Registrar of this Court and invested in a Fixed Deposit Receipt (FDR),
to be kept in an auto-renewal mode.
22. The parties are at liberty to raise all objections, including with
respect to the jurisdiction of the learned Arbitrator, before the learned
Arbitral Tribunal.
23. The Registry is directed to send a receipt of this order to the
learned Arbitrator through all permissible modes, including through e-
mail.
24. The present Petition, along with pending Application(s), if any,
stands disposed of in the aforesaid terms.
25. The date already fixed stands cancelled, i.e., 25.05.2026.
HARISH VAIDYANATHAN SHANKAR, J.
APRIL 13, 2026/nd/va
O.M.P.(I) (COMM.) 71/2026
16:18:37
