Disposed

Axis Finance Limited v. Thirumoorthy R & Anr.

Delhi HC2 May 2025ARB.P./147/2025

Case brief

AI extract

What is this about?

NBFC sought arbitrator appointment over loan agreement disputes after borrower default and arbitration invocation. Respondents cited financial hardship. Court appointed Sandhya Gupta as sole arbitrator under DIAC aegis, left all rights and contentions open for adjudication.

What the court decided

AI extract

Axis Finance Limited Vs Thirumoorthy R & Anr. — Arbitration | Delhi HC (2025)

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$~5

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 147/2025

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AXIS FINANCE LIMITED

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.....Petitioner Through: Mr. Ankur Bhardwaj, Mr. Shekher Gupta, Advs.

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versus

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THIRUMOORTHY R & ANR.

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.....Respondent

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Through: Respondent-in-person

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CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R 02.05.2025

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This is a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of disputes between the parties arising out of the Loan Agreement dated 20.09.2022.

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The arbitration clause is contained as clause 14 of the Loan Agreement and the same reads as under:

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/06/2025 at 23:49:11

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The facts are that the petitioner is a Non-Bank i ng finance institution, engaged in the b usiness of providing loan/ credit fac i lities to its customers. The petitioner a dvanced a loan of Rs. 30,25,922/- vid e Loan Agreement No. 0456PLA00055921, dated 20.09.2022 to the responde n t(s).

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The resp o ndent no.1 is the principal borrower a nd the respondent no. 2 is the co-borr o wer. 5. Since, th e respondent(s) defaulted in fulfilling t heir obligations under the Loan Agr e ement, the petitioner issued a loa n recall notice dated 07.11.2024. Th e reafter, the petitioner invoked arbitr a tion vide legal notice dated 11.12.20 2 4.

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The resp o ndent No.1 appears in-person for s e lf and for respondent No. 2 and state s that he is undergoing acute financi a l hardship and despite best efforts, has not been able to settle the amounts wi t h the petitioner. 7. In this v iew of the matter, and since there are disputes pending between the p e titioner and the respondent(s), I am inclined to allow the

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/06/2025 at 23:49:11

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present petition and the following directions are issued:-

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i) Ms. Sandhya Gupta (Adv.) (Mob. No. 9312280288) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

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ii) The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’).

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iii) The remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the Arbitration & Conciliation Act, 1996.

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iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference.

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v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator.

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vi) The parties shall approach the learned Arbitrator within two weeks from today.

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In the meanwhile, the respondent(s) are at liberty to make a viable offer to the petitioner, which shall be considered by the petitioner to put a closure to the entire matter.

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/06/2025 at 23:49:11

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With these directions, the present petition is disposed of.

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JASMEET SINGH, J

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MAY 2, 2025 / (MS)

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Click here to check corrigendum, if any

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Axis Finance Limited v. Thirumoorthy R & Anr.

Case brief

What is this about?

What the court decided

Axis Finance Limited v. Thirumoorthy R & Anr.

Case brief

What is this about?

What the court decided

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