INCRED FINANCIAL SERVICES LTD. Vs. SHREE KAMAKSHI MOTORS

JUDGEMENT

(1.) The present petition has been filed by the petitioner under Sec. 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator for adjudication of disputes with respondents.

(2.) Petitioner -M/s In Cred Financial Services Ltd. claims to be is providing various type of finance facility to its numerous customer/borrower. Petitioner claims that in the course of business, respondent No. 1 through respondents No. 2 and 3 approached the petitioner for obtaining Working Capital Channel Finance of Rs.1,00,00,000.00 (Rupees One Crore only) and Working Capital Term Loan of Rs.50,00,000.00 (Rupees Fifty Lacs only) and relying on the requests of the respondents, the petitioner vide letter dtd. 30/4/2018 sanctioned total limit of Rs.1,00,00,000.00. In addition, extension of Working Capital Finance of Rs.1,00,00,000.00 was executed through Addendum Sanction by Petitioner for the sum of Rs.1,00,00,000.00. Petitioner claims to have entered into Master Facility Agreement dtd. 4/5/2018 at Delhi for Working Capital Channel Finance of Rs.1,00,00,000.00 (Rupees One Crore only) and Working Capital Term Loan of Rs.50,00,000.00 (Rupees Fifty Lacs only) and also furnished Deed of Guarantee dtd. 4/5/2018 for a sum of Rs.1,00,00,000.00 for guaranteeing the obligations of the borrower. The parties also entered into Loan Agreements, executed Annexure-I and Annexure-II being Demand Promissory Note and Additional Condition for Disbursement. According to petitioner, by entering into Master Facility Agreement and signing all the documents respondents bounded themselves by the terms and conditions stated therein. However, respondents failed to maintain financial discipline and further failed to regularly pay the principal and interest due under the loan agreement and also failed to respond to petitioner's calls and so, petitioner was constrained to issue Loan Recall notice dtd. 12/3/2020.

(3.) Further, petitioner claims to have filed a petition under Sec. 9 of the Act being OMP (I) Comm. 18/2021 before the District Courts, New Delhi ,whereunder the court granted interim relief vide order dtd. 3/2/2021 and restrained the respondents from creating third party interest in respect of certain properties. Thereafter, petitioner vide notice dtd. 26/6/2021 invoked arbitration in terms of Clause- 15 (b) of the Loan Agreement/ Master Facility Agreement calling upon the respondents to agree to the appointment of Sole Arbitrator from the list of three arbitrators mentioned in the said notice. The aforesaid petition being OMP (I) Comm. 18/2021 was disposed of vide order dtd. 17/8/2021 observing that since arbitration proceedings are going to commence, the interim order shall remain in force till disposal of application under Sec. 17 by the learned Arbitrator.