Moneywise Financial Services Pvt. Ltd. Vs Bhagwati Traders through Its Propruetor Sh. Deepak Kumar and Anr. — Delhi HC (2025) — LawSathi Research

Moneywise Financial Services Pvt. Ltd. Vs Bhagwati Traders through Its Propruetor Sh. Deepak Kumar and Anr. — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appointment of Mr. Shiva Pande, Advocate, as Sole Arbitrator to adjudicate the disputes; arbitration under the aegis of the Delhi International Arbitration Centre (DIAC) per its rules, with Arbitrator fees as per the DIAC Schedule of Fees; Arbitrator to file disclosure under Section 12(2) within a week of entering on reference.

Issue for consideration

Whether an Arbitrator should be appointed under Section 11 of the Arbitration & Conciliation Act, 1996 to adjudicate upon the disputes between the parties. +1 more

Court's answer

Mr. Shiva Pande, Advocate, (Mob: 9999086808) is appointed as a Sole Arbitrator to adjudicate upon the disputes between the parties.

Ratio / Principle

This Court has jurisdiction to entertain the present petition because Clause 8.2 of the Loan Agreement, which contains the arbitration clause, stipulates that the seat of arbitration shall be in Delhi.

Key takeaways

The arbitration shall take place under the aegis of the Delhi International Arbitration Centre (DIAC) and abide by its rules and regulations.ratio¶¶19
The Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.ratio¶¶19
The Arbitrator is requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within a week of entering on reference.ratio

Detailed headnote1 paragraphs

Delhi HC, ARB.P. 1916/2024 (Subramonium Prasad J.; order dated 18.02.2025): Section 11 Arbitration & Conciliation Act, 1996 petition by MONEYWISE FINANCIAL SERVICES PVT LTD for appointment of an Arbitrator, after BHAGWATI TRADERS defaulted on Rs.15,13,394/- advanced under a Master Loan Agreement dated 31.08.2022 and failed to reply to a legal notice dated 10.10.2024 invoking arbitration under Section 21. Court held it had jurisdiction as Clause 8.2 of the Loan Agreement stipulates the seat of arbitration shall be in Delhi; appointed Mr. Shiva Pande, Advocate, as Sole Arbitrator under the aegis of DIAC (fees per DIAC Schedule of Fees; disclosure under Section 12(2) within a week of entering on reference). Claims/counter-claims and their merits kept open for the Arbitrator; petition disposed of along with pending application(s), if any.

$~4

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 1916/2024

MONEYWISE FINANCIAL SERVICES PVT LTD .....Petitioner Through: Ms. Mehvish Khan and Mr. Aman Choudhary, Advocates.

versus

BHAGWATI TRADERS THROUGH ITS PROPRUETOR SH. DEEPAK KUMAR AND ANR .....Respondents Through:

CORAM:

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

O R D E R

% 18.02.2025

This is a petition under Section 11 of the Arbitration & Conciliation Act, 1996 for appointment of an Arbitrator to adjudicate upon the disputes between the parties.

Material on record indicates that a Master Loan Agreement dated 31.08.2022 was entered into between the parties under which the Petitioner had advanced Rs.15,13,394/- to the Respondents.

It is stated that since the Respondents defaulted in repayment of the loan amount, the Petitioner issued a loan recall/terminated dated 24.06.2023. It is stated that the Petitioner issued a legal notice dated 10.10.2024 under Section 21 of the Arbitration & Conciliation Act invoking arbitration. It is stated that since the Respondents failed to reply to the said notice invoking arbitration, the Petitioner approached this Court by filing the present Petition for appointment of an Arbitrator.

On 02.12.2024, this Court issued notice in the matter. It is stated that

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 23:48:42

the Respondents have been served through email by the Registry. Therefore, service is complete.

Since Clause 8.2 of the Loan Agreement which contains the arbitration clause stipulates that the seat of arbitration shall be in Delhi, this Court has jurisdiction to entertain the present Petition.

Accordingly, Mr. Shiva Pande, Advocate, (Mob: 9999086808) is appointed as a Sole Arbitrator to adjudicate upon the disputes between the parties.

The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.

The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within a week of entering on reference.

All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law.

Needless to say, nothing in this order shall be construed as an expression of this Court on the merits of the contentions of the parties.

The present petition stands disposed of in the above terms along with pending application(s), if any.

SUBRAMONIUM PRASAD, J

FEBRUARY 18, 2025 hsk

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 23:48:42