Hero Fincorp Limited Vs Prime Pressing Tools Priavte Limited & Ors. — Arbitration | Delhi HC (2025)

Hero Fincorp Limited Vs Prime Pressing Tools Priavte Limited & Ors. — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Continuation of the attachment of the respondents' bank accounts (effected vide order dated 07.04.2025) till varied/modified/set aside by the learned Arbitral Tribunal; copy of the order to be served on the concerned bank.

Issue for consideration

Whether the interim attachment of the respondents' bank accounts effected on 07.04.2025 should continue under Section 9 of the Arbitration and Conciliation Act, 1996 pending the arbitral process.

Court's answer

The Court is satisfied that a valid arbitration clause exists (Clause No. 20) and that the petitioner has already filed a petition under Section 11 of the 1996 Act.

Ratio / Principle

The petitioner admittedly advanced a loan which has not been repaid by the respondents, and under Section 9 of the 1996 Act the Court has to preserve the subject matter of the arbitral dispute.

Key takeaways

The bank accounts attached vide order dated 07.04.2025 shall continue to remain attached till varied/modified/set aside by the learned Arbitral Tribunal, and a copy of the order is to be served on the concerned bank.ratio¶21

Detailed headnote1 paragraphs

Section 9, Arbitration and Conciliation Act, 1996 — interim relief — attachment of bank accounts. Hero Fincorp Limited, an NBFC, sought attachment of the bank accounts of the principal borrower (Respondent No. 1) and co-borrowers (Respondents Nos. 2–5) along with credit balances. A loan of Rs. 6,86,80,000/- was sanctioned vide Sanction Letter dated 22.09.2023, repayable in 180 months at a floating rate of 14.75% per annum, secured by equitable mortgage of property at Sikandrabad, Distt. Bulandshahr, U.P.; the mortgaged property stands attached under the Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act, 1986 and is not available for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest proceedings. Notice having been issued on 07.04.2025 with interim attachment of the respondents' bank accounts, and the respondents (served by email per the loan document) remaining unrepresented, the Court, satisfied that a valid arbitration clause (Clause No. 20) exists and that a Section 11 petition has already been filed, held that under Section 9 the Court must preserve the subject matter of the arbitral dispute. The attachment of the bank accounts was directed to continue till varied/modified/set aside by the learned Arbitral Tribunal, with a copy of the order to the concerned bank; the petition was disposed of accordingly (Jasmeet Singh, J., 12.12.2025).

$~75

IN THE HIGH COURT OF DELHI AT NEW DELHI

- O.M.P. (I)(COMM) 120/2025 HERO FINCORP LIMITED ....Petitioner Through: Mr. Rajat Katyal, Ms. Ruchik, Advs.

versus

PRIME PRESSING TOOLS PRIAVTE LIMITED & ORS

......Respondents

Through:

CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 12.12.2025

This is a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996, amongst other reliefs, seeking attachment of the Bank Accounts of the respondent along with the credit balance.

The briefs facts are that the petitioner is a Non Banking Finance Company in the business of providing finance and other services. Respondent No. 1 is the principal borrower and the respondent No. 2 to 5 are co-borrowers. The respondents approached the petitioner for a grant of a secured financial facility.

The petitioner sanctioned a loan vide Sanction Letter dated 22.09.2023 for a sum of Rs. 6,86,80,000/- against property to be repaid within a period of 180 months along with a floating rate of interest of 14.75% per annum.

Mr. Katyal, learned counsel for the petitioner, states that the loan is secured by equitable mortgage of property situated at Industrial Property Khata No-189, Gata No-1975m, situated at Village- Sikandarabad, Dehat

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 18/12/2025 at 12:32:09

Tehsil Sikandrabad, Distt- Bulandshahr, Sikandrabad, Uttar Pradesh 203205. The same is attached under UP Gangsters Act (Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act, 1986 a nd is not available for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest p roceedings.

This Court on 07.04.2025, while issuing notice as an interim measure was pleased to attach the bank accounts of the respondents.

The respondents have been served on their emails as per the loan document.

Despite service, there is nobody appearing on behalf of the respondents.

I am satisfied that there exists a valid arbitration clause being Clause No. 20 and the petitioner has already filed a petition under Section 11 of the 1996 Act.

Admittedly, the petitioner has advanced a loan which has not been repaid by the respodents. Under Section 9 of the 1996 Act, the Court has to preserve the subject matter of the arbitral dispute.

For the said reasons, the bank accounts as attached vide order dated 07.04.2025 shall continue till varied/ modified/ set aside by the learned Arbitral Tribunal.

A copy of the order be served to the concerned bank.

The petition is disposed of in aforesaid terms.

JASMEET SINGH, J

DECEMBER 12, 2025/AS

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 18/12/2025 at 12:32:09