Allowed

Banas Finance Limited v. Midcity Heights

Bombay HC24 Sept 2024CARBP/312/2024

Case brief

AI extract

What is this about?

In an interim order under Section 9 of the Arbitration and Conciliation Act, 1996, the Court accepted the petitioner's submissions regarding the respondent's default under loan agreements and directed the disclosure of the respondent's assets to secure the pending arbitration.

What did the court decide?

Direct the Respondents to disclose, within two weeks, all movable and immovable properties held personally or jointly on affidavit.

Banas Finance Limited vs Midcity Heights — Arbitration | Bombay HC (2024)

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22-CARBP-312-2024-R.DOC

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Shephali

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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IT ITS COMMERCIAL DIVISION

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COMMERCIAL ARBITRATION P2ETITION NO. 312 OF 2024

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Banas Finance Limited …Petitioner

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Versus

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Midcity Heights & Ors …Respondents

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Mr Chirag Mody , i/b Ruchi Bist, for the Petitioner.

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Mr Rishikesh Soni , with Raveena Yadav, i/b Raveena Yaddav, for the Respondents.

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SHEPHALI SANJAY MORMARE

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Digitally signed by SHEPHALI SANJAY MORMARE Date: 2024.10.17 17:07:55 +0530

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PC:-

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CORAM: ARIF S. DOCTOR, J DATED: 15th October 2024

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Mr Mody, Learned Counsel appearing on behalf of the Petitioner submits that the Petitioner hand lent and advance of an amount of approximately Rs. 8 crores to the Respondent under a Memorandum of Understanding ( “MoU” ) dated 12th March 2019. He points out that this was subsequently recorded and acknowledged in the subsequent MoU dated 10th December 2020 entered into since the Respondent had requested the Petitioner to extend the period of repayment upto and including 31st March 2021. He then submits that despite the date of 31s March 2021 have been elapsed, the Respondent failed and neglected to make repayment of the said amounts. It was thus that the

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Page 1 of 3

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22-CARBP-312-2024-R.DOC

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Petitioners were constrained to issue a Loan Recall Notice dated 15th February 2023. Mr Mody submits that despite due receipt of the Loan Recall Notice, the Respondents not only failed and neglected to make payment of the amounts due and payable but also did not respond to the said notice. He submits that it was in these circumstances that the Petitioner invoked an arbitration vide a notice dated 21th May 2024 to which again there was no response. He submits that it is in the backdrops of these facts that the present Petition under Section 9 of the Arbitration and Conciliation Act 1996 has been filed. He today presses for an order of disclosure of the assets of the Respondents, given the undisputed liability of the Respondents to make payment under the MoU.

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The Respondents were represented today and sought time to file an Affidavit in Reply and on merits the Respondents have now submissions to make. This was objected by Mr Mody, who pointed out that time was already granted.

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The record before me shows that there is no dispute or denial to the fact that the Respondent is in default of its obligation under the said MoUs. I, therefore, find merit in the submissions of Mr Mody that a case for disclosure in terms of prayer clause (b) has been made out.

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Therefore, there shall be an order in terms of prayer clause (b), which reads thus:

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“(b) That pending the commencement, culmination initiation and completion of the Arbitration proceedings, this Hon'ble Court be pleased to direct the Respondents and/or its

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Page 2 of 3

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22-CARBP-312-2024-R.DOC

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officers, servants, agents and/or all or any persons claiming through and under them to disclose on affidavit, all the immovable and moveable properties held personally/jointly with any other person.”

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The disclosure is to be made within a period of two weeks from today.

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All rights and contentions of the Respondents are kept open.

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List the matter on 19th November 2024 for further ad-interim.

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(ARIF S. DOCTOR, J)

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Page 3 of 3

Banas Finance Limited v. Midcity Heights

Case brief

What is this about?

What did the court decide?

Banas Finance Limited v. Midcity Heights

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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