Iifl Finance Limited vs Aqua Zoo Aqua Systems — Arbitration | Bombay HC (2026)

Iifl Finance Limited vs Aqua Zoo Aqua Systems — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

Interim measures in terms of prayer clause (a) pending Arbitration and till making of the final Award: attachment/freezing of the Respondents' bank accounts (including the specified Axis Bank account of Aqua Zoo Aqua Systems, A/c No. 917020034662222, IFSC UTIB0001859) and other unknown accounts to the extent of Rs. 2997457.42, with restraint on withdrawal/transfer of funds; the interim measures cease automatically if the Petitioner does not commence arbitration within 90 days. Petition disposed of; no order as to costs.

Issue for consideration

Whether interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 — attachment/freezing of the Respondents' bank accounts to the extent of Rs. 29,97,457.42 and restraint on withdrawal/transfer of funds — should be granted to the Petitioner before commencement of arbitral proceedings arising out of the Loan Agreement dated 26 October 2023, given the Respondents' non-appearance and the Petitioner's apprehension of siphoning of funds.

Court's answer

Considering that the Respondents had not appeared before the Court contesting the Petitioner's claim, and the apprehension expressed by the Petitioner, it would be just and proper to make interim measures in favour of the Petitioner.

Ratio / Principle

Pending Arbitration and till making of the final Award, interim measures were granted in terms of prayer clause (a).

Key takeaways

Per prayer clause (a), the Respondents' bank accounts — including accounts not brought to the Petitioner's knowledge — were to be attached/frozen to the extent of Rs. 2997457.42, and the Respondents restrained from withdrawing and/or transferring funds from such accounts.ratio¶¶19
If the Petitioner fails to commence arbitration within a period of 90 days, the interim measures shall automatically cease to operate.ratio¶¶24

Detailed headnote1 paragraphs

Bombay High Court (O.O.C.J.) — Sandeep V. Marne, J.; Arbitration Petition No.475 of 2025; decided 27 April 2026. Iifl Finance Limited filed a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim measures before commencement of arbitral proceedings, the disputes having arisen out of a Loan Agreement dated 26 October 2023, claiming Rs. 29,97,457.42 due and payable by the Respondents. Hamdust notice issued on 28 January 2026 was pasted on the Respondents' door; none appeared. Holding it just and proper in view of the Respondents' non-appearance and the Petitioner's apprehension of siphoning of funds, the Court granted interim measures in terms of prayer clause (a): attachment/freezing of the Respondents' bank accounts — including the specified Axis Bank account of Aqua Zoo Aqua Systems (A/c No. 917020034662222, Kolathur, Chennai, IFSC UTIB0001859) — to the extent of Rs. 2997457.42, and restraint on withdrawal/transfer of funds, operating pending Arbitration and till making of the final Award. The interim measures automatically cease if arbitration is not commenced within 90 days. Petition disposed of; no order as to costs.

2026:BHC-OS:10935

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

ARBITRATION PETITION NO.475 OF 2025

Iifl Finance Limited ....Petitioner V/S

Aqua Zoo Aqua Systems & Ors. ....Respondents

Ms. Pooja Singh for the Petitioner.

CORAM : SANDEEP V. MARNE, J. DATE : 27 APRIL 2026.

P.C.:

This is a Petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 ( Arbitration Act ) seeking interim measures before commencement of the arbitral proceedings. The disputes and differences between the parties have arisen out of the Loan Agreement dated 26 October 2023.

I have heard Ms. Singh, the learned counsel appearing for the Petitioner.

By order dated 28 January 2026 this Court had issued Hamdust notice to the Respondents. Affidavit of Service indicates that Hamdust notice has been pasted on the door of the Respondents. However, none has appeared on behalf of the Respondents.

katkam Page No. 1 of 3

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According to Ms. Singh, an amount of Rs.29,97,457.42 was due and payable by the Respondents at the time of filing of the Petition. He submits that Respondents are likely to siphon off funds from the Bank account. She would accordingly pray for interim measures in terms of prayer clause (a).

Considering the position that Respondents have not appeared before this Court contesting the claim of the Petitioner and the apprehension expressed by the Petitioner, it would be just and proper to make interim measures in favour of the Petitioner.

6. I accordingly proceed to pass the following order:

Pending Arbitration and till making of final Award there shall be interim measures in terms of prayer clause (a) which reads thus:

a. Attach/Freeze the below-mentioned bank account/s and other bank accounts of the respondents, which are not brought to the knowledge of the petitioner company, to the extent of Rs. 2997457.42 (Rupees Twenty Nine Lakh(s) Ninety Seven Thousand Four Hundred Fifty Seven And Paise Forty Two Only) and restrain the respondents from withdrawing and/or transferring the funds from the following below-mentioned bank account/s.

BANK	BANK	BANK	BRANCH ADDRESS
ACCOUNT	ACCOUNT	NAME
HOLDER	NO.
AQUA ZOO AQUA	917020034662222	AXIS BANK	PLOT NO.123 & 125/C,
SYSTEMS			POOMPUHAR NAGAR 1ST MAIN ROAD, KOLATHUR, CHENNAI, TAMIL NADU, PIN 600099 IFSC Code: UTIB0001859

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katkam

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If the Petitioner fails to commence arbitration within a period of 90 days, the interim measures shall automatically cease to operate.

With the above directions, the Arbitration Petition is disposed of. There shall be no order as to costs.

(SANDEEP V. MARNE, J.)

Page No. 3 of 3

Signed by: Sudarshan R. Katkam katkam Designation: PS To Honourable Judge Date: 28/04/2026 19:08:48