Disposed

Axis Finance Limited v. Medicharla Siva Tata Rao Naidu & Anr.

Delhi HC19 Nov 2025ARB.P./433/2025

Case brief

AI extract

What is this about?

Petition under Section 11(6) seeking appointment of an arbitrator over defaults under a personal loan agreement containing an arbitration clause. Respondents were served but did not appear. The court found a valid arbitration clause and disputes, appointed a sole arbitrator under DIAC rules, and disposed of the petition.

What did the court decide?

Sole Arbitrator appointed; arbitration to proceed under DIAC aegis and fee rules; all rights and contentions left open.

Axis Finance Limited Vs Medicharla Siva Tata Rao Naidu & 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. 433/2025 AXIS FINANCE LIMITED ....Petitioner Through: Mr. Ankush Bhardwaj, Adv. versus MEDICHARLA SIVA TATA RAO NAIDU & ANR......Respondents Through:

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CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R 19.11.2025

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This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator.

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The brief facts of the case are that the Petitioner, a non-banking finance institution, is engaged in the business of providing loan/credit facilities. The respondent No. 1 approached the petitioner seeking a personal loan facility and consequently a Loan Agreement dated 31.03.2023 was executed between the parties. The respondent No. 1 is the principal borrower and respondent No. 2 is the co-borrower.

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The Loan Agreement contains an arbitration Clause being Clause No. 14 which reads as under:

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“ 14. Arbitration :

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(i) All disputes, differences and/or claim or questions arising out of these presents or in any way touching or concerning the same or as to constructions, meaning or effect thereof or as to the right, obligations and liabilities of the parties hereunder shall be referred to and settled by arbitration, to be held in

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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 24/11/2025 at 11:14:31

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accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof, of a sole arbitrator to be nominated by the Lender, and in the event of death, unwillingness, refusal, neglect, inability or incapability of a person so appointed to act as an arbitrator, the Lender may appoint a new arbitrator to be a sole arbitrator. The arbitrator shall not be required to give any reasons for the award and the award of the arbitrator shall be final and binding on all parties concerned. The arbitration proceedings shall be held Mumbai/Delhi.

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(ii) Notwithstanding anything to the contrary contained herein, any dispute, controversy or claim arising out of or relating to this contract, including its construction, meaning, scope or validity thereof, shall be resolved and settled by arbitration under the Arbitration and Conciliation Act, 1996 (as amended) which may be administered electronically under Online Dispute Resolution (ODR), in accordance with its Dispute Resolution Rules (“Rules”).

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(iii)The parties consent to carry out the aforesaid proceedings electronically via the email addresses and / or mobile numbers as per Axis Finance records, updated from time to time. (iv)The parties agree that the aforesaid proceedings shall be carried out by a sole arbitrator appointed under the Rules. The juridical seat of arbitration shall be Delhi/Mumbai, India and the aforesaid proceedings shall be subject to the exclusive jurisdiction of the competent courts in Delhi/Mumbai, India.

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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 24/11/2025 at 11:14:31

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The language of arbitration shall be English. The law governing the arbitration proceedings shall be Indian law. The decision of the arbitrator shall be final and binding on the parties The Borrower irrevocably waives any objection now or in future, to the laying of the venue of any legal proceedings in the courts and tribunals at Delhi/Mumbai, and any claim that any such legal proceedings have been brought in an inconvenient forum and further irrevocably agrees that a judgment in any legal proceedings brought in the courts and tribunals at Delhi/Mumbai, shall be conclusive and binding upon it and may be enforced in the courts of any other jurisdiction, (subject to the laws of such jurisdiction) by a suit upon such judgment a certified copy of which shall be conclusive evidence of such judgment, or in any other manner provided by law.”

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Since there were defaults the petitioner invoked arbitration vide legal notice dated 15.01.2025 and thereafter filed the present petition.

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The respondent No. 1 had already been served and as per the Audit Trail the email ID of respondent No. 2 is ID [email protected]. 6. As per the Affidavit of Service, respondent No. 2 has also been served at the said email ID. Despite service there is nobody appearing on behalf of the respondents.

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I am satisfied that there is a valid arbitration clause and there are disputes between the parties which need to be resolved through the arbitral mechanism.

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For the said reasons, the petition is allowed and the following

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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 24/11/2025 at 11:14:31

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directions are issued:-

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i) Mr. Rahul Tyagi, Advocate (Mob. No. 9810079817) 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 DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

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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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The Audit Trail and the Affidavit of Service handed over in Court today is taken on record.

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The present petition is disposed of in the aforesaid terms.

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JASMEET SINGH, J

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NOVEMBER 19, 2025/AS

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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 24/11/2025 at 11:14:31

Axis Finance Limited v. Medicharla Siva Tata Rao Naidu & Anr.

Case brief

What is this about?

What did the court decide?

Axis Finance Limited v. Medicharla Siva Tata Rao Naidu & Anr.

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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