Disposed

Poonawalla Fincorp Limited v. Up Money Limited & Ors.

Delhi HC3 Nov 2025O.M.P.(I) (COMM.)/421/2025

Case brief

AI extract

What is this about?

Section 9 petition by an NBFC seeking to secure hypothecated assets for a defaulted Rs. 10 crore term loan facility with guarantors. Parties agreed on arbitration; the Court appointed a sole arbitrator under DIAC aegis, directed the petition be treated as a Section 17 application before the arbitrator, and disposed of it with all merits questions left open.

What the court decided

AI extract

Poonawalla Fincorp Limited Vs Up Money Limited & Ors. — Arbitration | Delhi HC (2025)

¶1

$-34

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

¶3

+ O.M.P.(I) (COMM.) 421/2025 and I.A. 25217/2025

¶4

Date of Decision : 03.11.2025

¶5

IN THE MATTER OF:

¶6

POONAWALLA FINCORP LIMITED

¶7

OFFICE AT: PLOT NO 11, 5TH FLOOR, PREM DOHIL SADAN, RAJENDRA PLACE, NEW DELHI -110008

¶8

HAVING ITS REGISTERED OFFICE AT : 201 AND 202, 2ND FLOOR, AP81, KOREGAON PARK ANNEX, MUNDHWA, PUNE, MAHARASHTRA – 411036 (THROUGH ITS AUTHORIZED REPRESENTATIVE) MR. VIKAS YADAV

¶9

..... PETITIONER

¶10

Through: Mr. Asheesh Jain, Sr. Advocate with Mr. Shankar Senand Mr. Kush Gupta, Advocates.

¶11

Versus

¶12

1. UP MONEY LIMITED

¶13

(THROUGH ITS DIRECTOR MR. AJIT SINGH CHAWLA) SHOP NO.16/5, FRIENDS COLONY, NEAR OLD FARIDABAD METRO STATION, MAIN MATHURA ROAD, FARIDABAD, HARYANA-121002

¶14

REGISTERED OFFICE AT : 13 & 23, NEHRU SIDHANT KENDRA FEROZE GANDHI MARKET, LUDHIANA, PUNJAB, INDIA, 141001

¶15

Signature Not Verified

¶16

Signature Not Verified Signed By:PURUSHAINDRA KUMAR KA URAV

¶17

Signed By:NEHA CHOPRA Signing Date:12.11.2025 14:48:02

¶18

¶19

.... RESPONDENT NO.1 2. UP MONEY CORE INVESTMENT PRIVATE LIMITED (THROUGH ITS DIRECTOR MR. AJIT SINGH CHAWLA) REGISTERED OFFICE AT: 23, NEHRU SIDHANT KENDRA, FEROZE GANDHI MARKET, LUDHIANA, PUNJAB, INDIA, 141001.

¶20

.... RESPONDENT NO.2

¶21

MR. AJIT SINGH CHAWLA S/O MR. SARDUAL SINGH HOUSE NO. 127,GURDEV NAGAR, BHARAT NAGAR CHOWK LUDHIANA, PUNJAB 141001

¶22

.... RESPONDENT NO.3

¶23

MR. SUMEL SINGH CHAWLA S/O MR. AJIT SINGH CHAWLA HOUSE NO. 127,GURDEV NAGAR, BHARAT NAGAR CHOWK LUDHIANA, PUNJAB 141001

¶24

.... RESPONDENT NO.4

¶25

Through: Mr. Kunal Tandon, Sr. Advocate with Mr. Abhinav Agnihotri, Mr. Gitesh Chopra, Mr. Siddharth Singh and Ms.Natasha, Advocates.

¶26

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

¶27

JUDGEMENT

¶28

PURUSHAINDRA KUMAR KAURAV, J. (ORAL)

¶29

The present petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 (the Act) , seeking interim relief.

¶30

Signature Not Verified

¶31

Signature Not Verified

¶32

Signed By:NEHA CHOPRA Signing Date:12.11.2025 14:48:02

¶33

Signed By:PURUSHAINDRA 2 KUMAR KA URAV

¶34

The facts of the case would reveal that the petitioner and respondent no.1 are Non-Banking Finance Company (NBFC). Respondent nos. 2 to 4 are the Corporate Guarantors and Personal Guarantors. A term loan facility of Rs. 10 Crores was sanctioned by the petitioner on 13.09.2024, pursuant to a Facility-cum-Hypothecation Agreement dated 18.09.2024 ( hereinafter referred to as “the Facility Agreement” ). It is the case of the petitioner that the respondents have committed breaches of their contractual obligations under the Facility Agreement, including failure to make timely repayments and to maintain the stipulated security cover. It is further stated that as on 08.09.2025, an amount of ₹6,71,08,251/- remains outstanding and payable by the respondents. The record also indicates that the petitioner issued a Loan Recall-cum-Demand Notice dated 08.09.2025, followed by the invocation of the Deed of Guarantee through a notice dated 15.09.2025.

¶35

Therefore, the instant petition came to be filed essentially to secure hypothecated assets at least to the extent of 1.10 times of the total due payable, pending invocation of arbitration.

¶36

Vide order dated 10.10.2025, the Court issued notice and directed the respondent to place on record the updated revised certificate from the Chartered Accountant after 27.05.2025. The same has been placed on record as Annexure R8.

¶37

Moreover, by way of a reply, respondent No.1 has raised various objections. Besides the objections on merits, it is stated in paragraph no. 6 of the paragraph-wise reply that, in terms of Clauses 12.1 and 12.2 of the Facility Agreement, the facility was secured by a first and exclusive charge

¶38

Signature Not Verified

¶39

Signed By:PURUSHAINDRA KUMAR KA URAV

¶40

Signature Not Verified Signed By:NEHA CHOPRA Signing Date:12.11.2025 14:48:02

¶41

¶42

by way of hypothecation over the receivables classified as “0 DPD” with a security cover of 1.10 times the outstanding principal. It is further stated by Mr. Tandon, learned senior counsel for Respondent No.1, that Respondent No.1 has an overall book of Rs. 400 Crores and there is no reason to apprehend that, in the event the Petitioner succeeds, the awarded amount would not be recoverable.

¶43

More importantly, during the course of arguments, the parties are ad idem for the appointment of an arbitrator to adjudicate the dispute which has arisen between the parties.

¶44

Thus, upon consideration of the facts and circumstances of the case, and after taking note of the submissions advanced by the parties, the Court is of the view that all questions arising in the matter are amenable to be adjudicated by the Arbitrator.

¶45

Furthermore, the instant petition, along with the reply filed thereto, shall be placed before the learned Arbitrator, who shall deal with the same in accordance with law. The present petition shall be treated as an application under Section 17 of the Act.

¶46

Accordingly, in view of the aforesaid, this Court appoints Justice Rajul Bhargava (Retd.) (Mobile No: +91-9839053626; Email: [email protected] ) as the sole Arbitrator.

¶47

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

¶48

Signature Not Verified Signed By:PURUSHAINDRA KUMAR KA URAV

¶49

Signature Not Verified Signed By:NEHA CHOPRA Signing Date:12.11.2025 14:48:02

¶50

¶51

Schedule of Fees maintained by the DIAC.

¶52

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

¶53

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.

¶54

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

¶55

Let a copy of this order be sent to the Arbitrator through electronic mode as well.

¶56

Accordingly, the instant petition, along with pending application, stand disposed of.

¶57

PURUSHAINDRA KUMAR KAURAV, J

¶58

NOVEMBER 3, 2025 Nc/mj

¶59

Signature Not Verified

¶60

Signed By:PURUSHAINDRA KUMAR KA URAV

¶61

Signature Not Verified

¶62

Signed By:NEHA CHOPRA Signing Date:12.11.2025 14:48:02

¶63

Poonawalla Fincorp Limited v. Up Money Limited & Ors.

Case brief

What is this about?

What the court decided

Poonawalla Fincorp Limited v. Up Money Limited & Ors.

Case brief

What is this about?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Shabhnam Praveen & Ors. Vs Axis E-Corp Solution Private Limited & Ors.

Statcon Electronics India Limited Vs M/S Champion Semiconductor LLP

Bhupender Kaur Vs Axis E Corp Solutions Pvt. Ltd. & Ors.

Sh. Ravinder Goel Vs Sh. Ashwani Arora

M/S Tharu and Sons Pvt. Ltd. Vs Divisional Railway Manager Northern Railways

Avha Lifesciences Pvt. Ltd. through Its Authorised Signatory Representative Mr. Sushil Wattal through Vs Technomax Infosolutions & Ors.