Aditya Birla Finance Limited vs Ajay Khatana — Arbitration | Bombay HC (2025)

Aditya Birla Finance Limited vs Ajay Khatana — Arbitration | Bombay HC (2025)

What the court decided

AI extract

Outcome

Ad-interim relief in terms of prayer clauses (a) and (c), as moulded: (i) temporary injunction restraining the Respondents, their agents and persons claiming under them from alienating, encumbering or creating third-party rights in the two mortgaged properties at Lakkarpur, Faridabad, Haryana; and (ii) direction to file comprehensive asset-disclosure affidavits including bank accounts linked with PAN Nos. DSSPK7232R, HXZPK5745P and BRPPD4155C within two weeks of upload of the order. The Respondents remain entitled to seek variation, modification, vacation or alteration of the ad-interim relief; service of the order along with proceedings was directed, with liberty to file a reply by the next date; the matter is listed under the caption 'Interim Relief – Section 9' on February 26, 2025.

Issue for consideration

Whether ad-interim relief should be granted restraining the Respondents from alienating, transferring, parting with possession of or creating third-party rights in the mortgaged properties described in the petition, in connection with the Loan Agreement dated March 21, 2024, under Section 9 of the Arbitration and Conciliation Act, 1996. +1 more

Court's answer

Ad-interim relief in terms of prayer clauses (a) and (c), as moulded, is granted without prejudice to the rights and contentions of the parties and purely as an arrangement considering that the relief sought is only against the mortgaged property: the Respondents, their agents and any person claiming under them are restrained by temporary order and injunction from in any manner, directly or indirectly, dealing, selling, offering for sale, transferring, parting with possession of, delivering, or creating third-party rights in respect of the two mortgaged properties at Lakkarpur, Faridabad, Haryana.

Ratio / Principle

The Respondents are directed to file their respective comprehensive affidavits disclosing on oath all movable and immovable assets, including details of all bank accounts (with account numbers, statements, branch etc.) and amounts lying therein, including accounts linked with PAN Nos. DSSPK7232R, HXZPK5745P and BRPPD4155C, within two weeks from the date the order is uploaded on the Court's website.

Detailed headnote1 paragraphs

High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction — COMM. Arbitration Petition No. 27 of 2025 (Somasekhar Sundaresan, J.; order dated January 30, 2025). A Section 9, Arbitration and Conciliation Act, 1996 petition by lender Aditya Birla Finance Limited against Ajay Khatana and Ors. in connection with a Loan Agreement dated March 21, 2024 secured by mortgage of two properties at Lakkarpur, Tehsil Badhkal, Faridabad, Haryana; outstanding dues of Rs.47,51,225.08 as on October 22, 2024 and an unanswered recall notice dated November 4, 2024 were noted. Without prejudice to the parties' rights and contentions, and purely as an arrangement since the relief sought was only against the mortgaged property, ad-interim relief in terms of prayer clauses (a) and (c), as moulded, was granted: (a) the Respondents, their agents and persons claiming under them stand restrained from dealing with, selling, offering for sale, transferring, parting with possession of, delivering or creating third-party rights in the mortgaged properties; and (c) the Respondents must file comprehensive affidavits disclosing all movable and immovable assets and bank accounts, including those linked with PAN Nos. DSSPK7232R, HXZPK5745P and BRPPD4155C, within two weeks of upload of the order. The Respondents retain liberty to seek variation, modification, vacation or alteration; the matter was listed under 'Interim Relief – Section 9' on February 26, 2025 for hearing the Respondents on their reply.

47-CARBP-27-2025 copy.docx

PURTI PRASAD PARAB Digitally signed byPURTI PRASAD PARAB Date: 2025.02.04 14:51:51 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

COMM. ARBITRATION PETITION NO. 27 OF 2025

Aditya Birla Finance Limited …Petitioner

Versus

Ajay Khatana and Ors. …Respondents

Ms. Tikshta Modi a/w Ms. Jenny Somaiya i/b Akhil Modi & Associates for the Petitioner.

CORAM : SOMASEKHAR SUNDARESAN, J. DATE : JANUARY 30, 2025

PC :

This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 (for short “ the Act ”) in connection with the Loan Agreement dated March 21, 2024 which is secured by mortgage for property more particularly described as follows:

(i) “Property I - ID- 1B, 2NRJQ3, Plot No. C-2, Gali No. 1, Shiv Durga Vihar, Lakkarpur, Faridabad, Haryana - 121009” and

(ii) “Khata No. 36/39 Mustatil No. 13, Kila No. 20/1 (6-14), situated at village Lakkarpur, Tehsil Badhkal, Faridabad, Haryana”.

It is stated that the outstanding dues as on October 22, 2024 was the to sum Rs.47,51,225.08. A recall notice dated November 4, 2024 (Exhibit “C”) was issued to the Respondents, but there has been no response.

Today, when the matter is called out, Learned Counsel for the Petitioner seeks ad-interim relief in terms of prayer clause – (a) and (c). Without prejudice to the rights and contentions of the parties and purely as

an arrangement considering that the relief sought is only against the Page 1 of 3 January 30 2025

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mortgaged property, ad-interim relief in terms of prayer clause – (a) and (c), as moulded below, is hereby granted:-

The Respondents and their agents or any person claiming under them are hereby restrained by a temporary order and injunction of this Hon’ble Court from in any manner, directly or indirectly, dealing, selling, offering for sale, causing it to be offered for sale, transferring, causing to be transferred parting with possession of, delivering, creating or causing to be created any third party rights in respect of their personal mortgaged property situated at (i) “Property I - ID- 1B, 2NRJQ3, Plot No. C-2, Gali No. 1, Shiv Durga Vihar, Lakkarpur, Faridabad, Haryana - 121009” and (ii) “Khata No. 36/39 Mustatil No. 13, Kila No. 20/1 (6-14), situated at village Lakkarpur, Tehsil Badhkal, Faridabad, Haryana”.

The Respondents are directed to file their respective comprehensive affidavit disclosing on oath the assets both movable and immovable held by him including details of all bank accounts (with account numbers, bank account statement, bank branch etc) and all the amounts lying in the Bank accounts, including accounts linked with PAN No. DSSPK7232R and HXZPK5745P and BRPPD4155C, within a period of two weeks from the date this order is uploaded on this Court’s website.

The Respondents shall be entitled to seek variation, modification, vacation or alternation of the aforesaid ad-interim relief by approaching this Court. Learned Counsel for the Petitioner shall ensure service of this order on the Respondents along with all the proceedings once again, indicating that on the next date the matter would be taken up for further consideration to hear the Respondents. The Respondents shall also file a reply on or before the next date.

With the aforesaid directions, list under the caption “ Interim Relief – Section 9 ” on February 26, 2025 .

Page 2 of 3 January 30 2025

Purti Parab

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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.]

Page 3 of 3 January 30 2025

Purti Parab