Disposed

M/S Moneywise Financial Services Pvt. Ltd. v. Manish Hosiery and Ors.

Delhi HC20 Mar 2025ARB.P./57/2025

Case brief

AI extract

What is this about?

Petitioner sought appointment of a sole arbitrator under Clause 8.2 of a Master Loan Agreement after borrowers defaulted on a sanctioned loan and ignored notice invoking arbitration. The Delhi High Court allowed the petition, appointed Mr. Rizwan as sole arbitrator, directed arbitration under DIAC aegis, and left all contentions open.

What the court decided

AI extract

M/S Moneywise Financial Services Pvt. Ltd. Vs Manish Hosiery and… — Arbitration | Delhi HC (2025)

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$~17

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 57/2025

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M/S MONEYWISE FINANCIAL SERVICES PVT LTD ....Petitioner Through: Mr. Ranjeet Kumar, Ms. Preeti Kumari, Ms. Mehvish Khan, Advs.

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versus

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MANISH HOSIERY AND ORS .....Respondent Through:

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CORAM:

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HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 20.03.2025

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This is a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator to adjudicate the disputes between the parties.

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The petitioner by way of a Master Loan Agreement dated 27.06.2023, sanctioned a loan for a sum of Rs. 20,23,882 to the respondents. The respondent No. 1 is the borrower and respondent Nos. 2 and 3 are the co-borrowers. The said Agreement contained arbitration clause being Clause 8.2 which reads as under:

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“8.2. Arbitration: Any disputes, differences, controversies and questions directly or indirectly arising at any time hereafter between the Parties or their respective representatives or assigns, arising out of or in connection with this Agreement (or the subject matter of this Agreement), including, without limitation, any question regarding its existence, validity, interpretation, construction, performance, enforcement, rights and

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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 27/03/2025 at 15:01:15

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liabilities of the Parties, or termination ("Dispute") thereof shall be finally settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996, as amended ("Arbitration Act"). The Dispute shall be referred to a sole arbitrator duly appointed by the Parties with mutual consent failing which the sole arbitrator shall be appointed in accordance with the Arbitration Act. The language of the arbitration shall be English. The seat of the arbitration shall be at Delhi and the language of proceedings shall be English. The award rendered shall be in writing and shall set out the reasons for the arbitrator's decision. The costs and expenses of the arbitration shall be borne equally by each Party, with each Party paying for its own fees and costs including attorney fees, except as may be determined by the arbitration tribunal. Any award by the arbitration tribunal shall be final and binding.”

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Since the respondents defaulted in making payment, the petitioner issued Loan Recall Notice dated 15.11.2023 and thereafter, notice invoking arbitration clause dated 22.10.2024.

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As per the said Agreement, the email ids of all the respondents have been shown as [email protected].

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As per the affidavit of service, the respondents have been served at the abovesaid email id. Despite service of notice, there is nobody appearing on behalf of the respondent.

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Since there are disputes between the parties, the petition is allowed and the following directions are issued:-

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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 27/03/2025 at 15:01:15

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i. Mr. Rizwan, Adv. (Mob. No. 9643349576) 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 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 present petition is disposed of in the aforesaid terms.

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JASMEET SINGH, J

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MARCH 20, 2025/sp

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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 27/03/2025 at 15:01:15

M/S Moneywise Financial Services Pvt. Ltd. v. Manish Hosiery and Ors.

Case brief

What is this about?

What the court decided

M/S Moneywise Financial Services Pvt. Ltd. v. Manish Hosiery and Ors.

Case brief

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What the court decided

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