Iifl Finance Limited v. G C Raj Fabrics Pvt. Ltd.
Arbitration and Conciliation Act, 1996 – Section 9 – ad-interim protective reliefs
Case brief
What is this about?
Bombay High Court, OOCJ, Commercial Arbitration Petition 440 of 2025, IIFL Finance Limited v. G C Raj Fabrics Pvt. Ltd. & Ors., Somasekhar Sundaresan J, 9 October 2025. Section 9 Arbitration and Conciliation Act 1996 ad-interim reliefs; Facility Agreement dated May 30, 2024; loan default; notice dated April 2, 2025; claim of Rs.31,43,721.92/-; respondents absent despite service. Reliefs granted: freeze on alienation/encumbrance of assets; affidavit disclosure of bank accounts, properties and assets with encumbrances; bank guarantee securing Outstanding Loan Amounts with contractual interest till realization; reliefs operative pending Arbitral Tribunal's further interim consideration; vacatur/variation via Arbitral Tribunal; liberty to file Section 11 application within 30 days; listing on November 20, 2025.
What did the court decide?
Ad-interim reliefs per prayer clauses (A), (B) and (C): Respondents restrained from selling, transferring, alienating, encumbering or otherwise dealing with their assets (movable or immovable, wheresoever situated); Respondents directed to disclose on oath all bank accounts, properties and assets with details of encumbrances/fetters; Respondents to furnish a bank guarantee securing the Outstanding Loan Amounts with further and future interest at contractual rates till realization; reliefs to operate pending consideration of further interim relief by the Arbitral Tribunal.