Allowed

PNB Housing Finance Limited v. Kishor Bhagwan Tarwade & Ors.

Delhi HC12 Feb 2018O.M.P.(I) (COMM.)/480/2017

Case brief

AI extract

What is this about?

The Court, under Section 9 of the Arbitration and Conciliation Act, 1996, granted interim relief restraining respondents from disposing of or encumbering mortgaged property pending arbitration proceedings in a loan dispute.

What did the court decide?

Restraining the respondents from disposing of, selling, alienating, transferring or creating any encumbrance, charge or third party interest in the mortgaged property pending arbitration.

PNB Housing Finance Limited Vs Kishor Bhagwan Tarwade & Ors. — Arbitration | Delhi HC (2018)

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$~25

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IN THE HIGH COURT OF DELHI AT NEW DELHI + O.M.P.(I) (COMM.) 480/2017 PNB HOUSING FINANCE LIMITED

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..... Petitioner Through : Mr.Nishant Maidasani, Advocate.

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versus

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KISHOR BHAGWAN TARWADE & ORS.

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..... Respondents Through : None.

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CORAM: HON'BLE MR. JUSTICE YOGESH KHANNA

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O R D E R

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% 12.02.2018

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Per proof of delivery all the four respondents have been duly served through speed post at the second address. None appears on their behalf.

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The petitioner granted a loan to the respondents for the sum of Rs.2,65,35,000/- per ‘loan against property’ policy vide agreement No.NHL/PUN/1215/258695 dated 31.12.2015 against the equitable mortgage of immovable property bearing Shops No.18, 20, 21, 22 Lower Ground Floor, Shop Nos.38, 49, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 75 Upper Ground Floor, Sr. No.43, Hissa no.1+2+3+4+b/2, Kakade Terrace, near Ganpati Matha Temple, Warje Pune, Maharashtra as a security. The respondents did not adhere to the repayment schedule and failed to pay the installments in time. Clause No.10.8 of the agreement contains the arbitration clause between the parties and it notes as under:-

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“ 10.8 Arbitration

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Any and all disputes, claims, differences arising out of or in connection with the Loan Documents and or the performance of the Loan Documents shall be settled by arbitration to be referred to a sole arbitrator to be appointed by the PNBHFL and the award, thereupon, shall be binding upon the Parties. The place of arbitration shall be in Delhi or any other place as arbitrator may decide and shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and any statutory amendments thereof. The proceeding of Arbitration Tribunal shall be conducted in English language. Each party has to bear cost of representing its case before the Arbitrator. The cost of arbitration, including fees and expenses of the arbitrator, shall be shared equally by the Parties, unless the award otherwise provides.

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Subject to this Article herein, the Borrower(s) further agrees that all claims, difference and disputes, arising out of or in relation to dealings/transaction made in pursuant to the Loan Documents including any question of whether such dealings, transaction have been entered into or not, shall be subject to the exclusive jurisdiction of the courts at Delhi only.”

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Vide this petition under Section 9 of the Arbitration and Conciliation Act, 1996 the petitioner has sought directions against the respondent thereby restraining them from disposing of, selling, alienating, transferring or creating any encumbrance, charge or third

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party interest in any manner, whatsoever, in respect of above said property till the matter is adjudicated through arbitral proceedings.

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Since respondent have failed to appear despite service, the petition is allowed and till the matter is adjudicated finally through arbitral proceedings, the respondents are hereby restrained from disposing of, selling, alienating, transferring or creating any encumbrance, charge or third party interest in any manner, whatsoever, in respect of above said property.

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The petition stands disposed of. Order dasti .

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YOGESH KHANNA, J

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FEBRUARY 12, 2018 M

PNB Housing Finance Limited v. Kishor Bhagwan Tarwade & Ors.

Case brief

What is this about?

What did the court decide?

PNB Housing Finance Limited v. Kishor Bhagwan Tarwade & Ors.

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

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