Kerala High Court
Iti Finance Limited vs Koshakka Aslam Nihala on 8 December, 2025
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
1
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE K. NATARAJAN
MONDAY, THE 8TH DAY OF DECEMBER 2025 / 17TH AGRAHAYANA, 1947
OP(C) NO. 2776 OF 2025
AGAINST THE ORDER/JUDGMENT DATED IN MA(ARB.) NO. OF 2025 OF DISTRICT
COURT & SESSIONS COURT/RENT CONTROL APPELLATE AUTHORITY, ERNAKULAM
PETITIONER/S:
SAKTHI FINANCE LIMITED
ROOM NO 101-B, LAND MARK ENCLAVE, NO 39/3633-B, S.A. ROAD,
VALANJAMBALAM, ERNAKULAM 682 016 REPRESENTED BY ITS POWER OF
ATTORNEY HOLDER AND REGIONAL MANAGER, BIBIN GEORGE AGED 42
YEARS, S/O. K.C. GEORGE, 39/4422(A), SAHODARAN AYYAPPAN
ROAD, PALLIMUKKU, ERNAKULAM 682016
BY ADVS.
SRI.C.HARIKUMAR
SHRI.ARAVIND GOPAN
SHRI.HEMANTH HARI
SHRI.ARUN KUMAR M.A
SMT.FARAH JYOTHI PRADEEP
SMT.AISWARIYA V.R.
RESPONDENT/S:
1 UMESH K.U.
S/O. UNNI, KALATHIPARAMBIL HOUSE, KADEBHAGAM, PALLURUTHY,
VYASAPURAM ROAD, PALLURUTHY S.O., ERNAKULAM, PIN - 682006
2 UNNI
S/O. KUTTYL, KALATHIPARAMBIL HOUSE, KADEBHAGAM, PALLURUTHY,
VYASAPURAM ROAD, PALLURUTHY S.O., ERNAKULAM, PIN - 682006
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 08.12.2025, ALONG
WITH OP(C).2779/2025, 2834/2025 AND CONNECTED CASES, THE COURT ON THE SAME
DAY DELIVERED THE FOLLOWING:
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE K. NATARAJAN
MONDAY, THE 8TH DAY OF DECEMBER 2025 / 17TH AGRAHAYANA, 1947
OP(C) NO. 2779 OF 2025
AGAINST THE ORDER/JUDGMENT DATED IN MA(ARB.) NO. OF 2025 OF DISTRICT
COURT & SESSIONS COURT/RENT CONTROL APPELLATE AUTHORITY, ERNAKULAM
PETITIONER/S:
SAKTHI FINANCE LIMITED
ROOM NO 101-B, LAND MARK ENCLAVE, NO 39/3633-B, S.A. ROAD,
VALANJAMBALAM, ERNAKULAM 682 016 REPRESENTED BY ITS POWER OF
ATTORNEY HOLDER AND REGIONAL MANAGER, BIBIN GEORGE AGED 42
YEARS, S/O. K.C. GEORGE, 39/4422(A), SAHODARAN AYYAPPAN
ROAD, PALLIMUKKU, ERNAKULAM 682 016
BY ADVS.
SRI.C.HARIKUMAR
SHRI.ARAVIND GOPAN
SHRI.HEMANTH HARI
SHRI.ARUN KUMAR M.A
SMT.FARAH JYOTHI PRADEEP
SMT.AISWARIYA V.R.
RESPONDENT/S:
1 NIYAS MARAKKAR
S/O. MARAKKAR K.I., KILIYANKAL HOUSE, ULLAMPILLY MOOLA,
KAKKANAD, ERNAKULAM, PIN - 682030
2 MARAKKAR K.I.
S/O. ISMAYIL, KILIYANKAL HOUSE, ULLAMPILLY MOOLA, KAKKANAD,
ERNAKULAM, PIN - 682030
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 08.12.2025, ALONG
WITH OP(C).2776/2025 AND CONNECTED CASES, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
3
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE K. NATARAJAN
MONDAY, THE 8TH DAY OF DECEMBER 2025 / 17TH AGRAHAYANA, 1947
OP(C) NO. 2834 OF 2025
AGAINST THE ORDER/JUDGMENT DATED IN MA(ARB.) NO. OF 2025 OF
DISTRICT COURT & SESSIONS COURT/RENT CONTROL APPELLATE AUTHORITY,
ERNAKULAM
PETITIONER/S:
ITI FINANCE LIMITED
(FORMERLY KNOWN AS FORTUNATE INTEGRATED ASSETS FINANCE
LIMITED), REPRESENTED BY ITS BRANCH MANAGER AND AUTHORISED
SIGNATORY THOMAS T.J. AGED 43 YEARS, S/O. JOSEPH BRANCH
MANAGER, ITI FINANCE LIMITED, ZONAL OFFICE, 7TH FLOOR,
CONFIDENT TOWER, NH-66 BYPASS ROAD, CHAKKARAPARAMBU,
PALARIVATTOM P.O., ERNAKULAM, PIN - 682025
BY ADVS.
SRI.C.HARIKUMAR
SHRI.ARAVIND GOPAN
SHRI.HEMANTH HARI
SHRI.ARUN KUMAR M.A
SMT.FARAH JYOTHI PRADEEP
SMT.AISWARIYA V.R.
RESPONDENT/S:
1 KOSHAKKA ASLAM NIHALA
AGED 29 YEARS
11/641 ARAKKAL (MAMMOO) HOUSE, MWCKENCY GARDEN, PATTALAM,
FORT KOCHI, ERNAKULAM, PIN - 682001
2 ABDUL AZEEZ A.M.
AGED 70 YEARS
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
4
11/641 ARAKKAL (MAMMOO) HOUSE, MWCKENCY GARDEN, PATTALAM,
FORT KOCHI, ERNAKULAM, PIN - 682001
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 08.12.2025, ALONG
WITH OP(C).2776/2025 AND CONNECTED CASES, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
5
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE K. NATARAJAN
MONDAY, THE 8TH DAY OF DECEMBER 2025 / 17TH AGRAHAYANA, 1947
OP(C) NO. 3129 OF 2025
AGAINST THE ORDER/JUDGMENT DATED IN MA(ARB.) NO. OF 2025 OF DISTRICT
COURT & SESSIONS COURT/RENT CONTROL APPELLATE AUTHORITY, ERNAKULAM
PETITIONER/S:
SAKTHI FINANCE LIMITED
HAVING ITS REGISTERED OFFICE AT NO 62, DR NANJAPPA ROAD,
COIMBATORE 641 018 AND ITS BRANCH OFFICE AT ROOM NO 101-B, LAND
MARK ENCLAVE, NO 39/3633-B, S.A. ROAD, VALANJAMBALAM, ERNAKULAM
REPRESENTED BY ITS POWER OF ATTORNEY HOLDER AND REGIONAL
MANAGER, BIBIN GEORGE, PIN - 682016
BY ADVS.
SRI.C.HARIKUMAR
SHRI.ARAVIND GOPAN
SHRI.HEMANTH HARI
SHRI.ARUN KUMAR M.A
SMT.FARAH JYOTHI PRADEEP
SMT.AISWARIYA V.R.
RESPONDENT/S:
1 NOUSHAD V.A.
AGED 53 YEARS
ANACHALPADY VEEDU, KARUMALOOR, ALUVA, ERNAKULAM, PIN - 683102
2 ABDUL KADHAR
AGED 70 YEARS
ANACHALPADY VEEDU, KARUMALOOR, ALUVA, ERNAKULAM, PIN - 683102
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 08.12.2025, ALONG WITH
OP(C).2776/2025 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
6
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE K. NATARAJAN
MONDAY, THE 8TH DAY OF DECEMBER 2025 / 17TH AGRAHAYANA, 1947
OP(C) NO. 3175 OF 2025
AGAINST THE ORDER/JUDGMENT DATED IN MA(ARB.) NO. OF 2025 OF DISTRICT
COURT & SESSIONS COURT/RENT CONTROL APPELLATE AUTHORITY, ERNAKULAM
PETITIONER/S:
ITI FINANCE LIMITED
FORMERLY KNOWN AS FORTUNE INTEGRATED ASSETS FINANCE LIMITED,
REPRESENTED BY ITS BRANCH MANAGER AND AUTHORISED SIGNATORY
AKHIL RAVI, HAVING BRANCH OFFICE AT 1ST FLOOR, ESQUIRE
PALZA, ONE WAY JUNCTION, MARKET P.O., MUVATTUPUZHA, NEAR
BISMI HYPER MARKET, OPPOSITE H P PETROL PUMP, ERNAKULAM, PIN
- 686673
BY ADVS.
SRI.C.HARIKUMAR
SHRI.ARAVIND GOPAN
SHRI.HEMANTH HARI
SHRI.ARUN KUMAR M.A
SMT.FARAH JYOTHI PRADEEP
SMT.AISWARIYA V.R.
RESPONDENT/S:
1 JACOB DIARISH
KALLUNGATHARA HOUSE, NIRAVATH ROAD, MARADU P.O., ERNAKUALM,
PIN - 682304
2 MABLE K.P.
KALLUNGATHARA HOUSE, NIRAVATH ROAD, MARADU P.O., ERNAKUALM,
PIN - 682304
THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 08.12.2025, ALONG
WITH OP(C).2776/2025 AND CONNECTED CASES, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2025:KER:94872
OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025
7
JUDGMENT
These original petitions have been filed by the petitioners for issuing a direction to the District Court, Ernakulam, to assign numbers to the petitions and to take them up for consideration for passing appropriate orders under Section 9 of the Arbitration and Conciliation Act, 1996 ("the Act" for short).
2.Heard the arguments for the learned counsel for the petitioners.
3.The petitioners are financiers, and the respondents are borrowers who have defaulted in repaying the loan. Therefore, the petitioners filed an application under Section 9 of the Act, seeking an interim order before the District Court, Ernakulam for taking over possession of the vehicle. However, the office of the District Court, Ernakulam, raised an objection regarding territorial jurisdiction and, on the said ground, returned the files to the petitioners. Hence, the petitioners are before this court.
4.The learned counsel for the petitioners has contended that 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 8 there is an arbitration clause in the loan agreement, specifically Clauses 15 and 16, which provide that any dispute arising between the parties shall be resolved through arbitration. The agreement also stipulates that the place of arbitration shall be Mumbai. However, the counsel submits that for the purpose of invoking Section 9 of the Act, the petitioners are entitled to approach a court having jurisdiction as per the choice of the petitioners, and therefore, the application ought not to have been rejected or returned by the District Court.
5.In support of his contention, the learned counsel relied upon the judgment of the Hon'ble Supreme Court in BGS SGS Soma J.V. v. NHPC Ltd., (2020) 4 SCC 234. Based on the principles laid down in the said judgment, this Court, in O.P.(C) No. 2123 of 2025 dated 26.08.2025, had directed the District Court to assign a number to the petition and take up the matter. Therefore, it is contended that the return of the files by the District court is not correct and therefore, prayed for directing the District Court to take the matter and assign the number.
2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 9
6.This Court obtained a report from the concerned District Court in OP (C) No.2834/2025. The District Court has reported that the learned counsel brought to the notice of the court in respect of the judgment passed by this court in OP(C) No.2123 of 2025, but the petitioners had already taken back the file, and therefore, no case was pending before that court at the relevant point of time.
7.On perusal of the request made by the learned counsel for the petitioners in these cases, as well as the endorsement made by the District Court, it is seen that the learned counsel had brought to the notice of the court that the petitions were filed by the petitioners before the District Court and that an endorsement had been made and the matter was placed before the court. The endorsement reveals that the petitioners' counsel had requested the office to place the matter before the District Court Bench. However, the District Judge orally returned the file without passing any order rejecting the application.
8.The endorsement, as well as the report submitted by the 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 10 District Court in O.P.(C) No. 2834 of 2025, clearly reveals that the files were returned by the court. This Court, in O.P.(C) No. 2123 of 2025, has categorically held in paragraph 6 of the order as under ;
"6.Having heard the arguments and perused the records by impugned order, the District Judge, Ernakulam, returned the petition by relying upon the Judgment of the High court in the case of IDA Malappuram Branch. In that case, where the parties approached the Kerala High court for appointing the arbitrator and arbitration in Kerala, this court rejected the prayer where there is an agreement for arbitration to the arbitration proceedings. But in the case of Krishnakumar, another coordinate bench has categorically held, relying upon the judgment of the Hon'ble Supreme Court in the case of BGS SGS Soma J.V v. NHPC Ltd. (2020) 4 SCC 234 at paras. 22, 24, 26, 29, 30, and 31 in the judgment, that when parties knowingly approached the court and filed an application for interim measures, then the entire proceedings shall come within the jurisdiction of the subcourt. Therefore, the petitioner, knowing fully, filed the application before the court at Kerala under Section 9 of the act for interim measures and chose to approach the court that cannot be considered as the seat of arbitration. The seat of arbitration for proceeding and appointing the arbitrator Section 11 is altogether different from Section 9 of the Act for seeking interim order by approaching the court ."
9.In the said judgment, this court has held that when the petitioners knowingly files an application before a court in Kerala under Section 9 of the Act , seeking interim measures, the mere 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 11 choice to approach that court does not determine the seat of arbitration. The seat of arbitration, which is relevant for proceedings like appointing an arbitrator under Section 11, is altogether different from Section 9 of the Act for seeking an interim order by approaching the court where the vehicle said to be plying in Kerala, the petitioners consciously chose the Ernakulam court of their choice. Therefore, the return of the files by the District Court is not correct. Hence, it is necessary to issue directions to the District Court, Ernakulam, for assigning the number and taking the miscellaneous application filed by the petitioners for consideration.
10.Considering the facts and circumstances of the cases. Though the State of Kerala assigned the jurisdiction of challenging the award under Section 34 of the Act before the Commercial Court which is a Sub court and District Court is the Commercial Appellate Court, but the pecuniary jurisdiction as per Section 2(1)(e) of the Arbitration and Conciliation Act, execution proceedings must be filed in the Principal Civil Court 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 12 having original jurisdiction in a District. Although a Commercial Court exists, it has jurisdiction only over disputes with a value of not less than ten lakh rupees or more, as per Section 3 of the Commercial Courts Act, as per the notification of the Kerala Government Official Gazette dated 18.03.2022. Therefore, the present proceedings must be filed in the District Court Accordingly, all these original petitions are disposed of with a direction to the District Judge, Ernakulam to assign the numbers to the miscellaneous applications filed by the petitioners and pass orders in accordance with law.
Sd/-
K. NATARAJAN JUDGE SJ 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 13 APPENDIX OF OP(C) NO. 2776 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE AGREEMENT EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS DATED 31.05.2022 EXHIBIT P2 THE TRUE COPY OF THE UNNUMBERED APPLICATION BEARING FILING NO M.A.(ARB.)NO 4188 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 24.09.2025 AND PHYSICAL COPY FILED ON 10.10.2025 EXHIBIT P3 THE TRUE COPY OF THE ATTACHMENT APPLICATION ALONG WITH SCHEDULE IN UNNUMBERED I.A.NO OF 2025 IN UNNUMBERED M.A.(ARB.) BEARING FILING NO M.A.(ARB.)NO 4188 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 24.09.2025 AND PHYSICAL COPY FILED ON 10.10.2025 EXHIBIT P4 THE TRUE COPY OF THE EXPLANATION NOTE FURNISHED BY THE REGISTRY ON THE DOCKET OF EXHIBIT P2 EXHIBIT P5 THE TRUE COPY OF THE JUDGMENT IN O.P.(C.) NO 2123 OF 2025 PASSED BY THIS HON'BLE COURT DATED 26.08.2025 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 14 APPENDIX OF OP(C) NO. 2779 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE AGREEMENT EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS DATED 30.05.2022 EXHIBIT P2 THE TRUE COPY OF THE UNNUMBERED APPLICATION BEARING FILING NO M.A.(ARB.)NO 4185 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 24.09.2025 AND PHYSICAL COPY FILED ON 10.10.2025 EXHIBIT P3 THE TRUE COPY OF THE ATTACHMENT APPLICATION ALONG WITH SCHEDULE IN UNNUMBERED I.A.NO OF 2025 IN UNNUMBERED M.A.(ARB.) BEARING FILING NO M.A.(ARB.)NO 4185 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 24.09.2025 AND PHYSICAL COPY FILED ON 10.10.2025 EXHIBIT P4 THE TRUE COPY OF THE EXPLANATION NOTE FURNISHED BY THE REGISTRY ON THE DOCKET OF EXHIBIT P2 EXHIBIT P5 CTHE TRUE COPY OF THE JUDGMENT IN O.P.(C.) NO 2123 OF 2025 PASSED BY THIS HON'BLE COURT DATED 26.08.2025 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 15 APPENDIX OF OP(C) NO. 2834 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE AGREEMENT EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS DATED 31.07.2023 EXHIBIT P2 THE TRUE COPY OF THE ORDER IN UNNUMBERED M.A.(ARB)NO OF 2025 OF THE HON'BLE DISTRICT JUDGE'S COURT, ERNAKULAM DATED 29.07.2025 EXHIBIT P3 THE TRUE COPY OF THE UNNUMBERED APPLICATION BEARING FILING NO M.A.(ARB.)NO 4171 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 26.09.2025 AND PHYSICAL COPY FILED ON 07.10.2025 EXHIBIT P4 THE TRUE COPY OF THE ATTACHMENT APPLICATION ALONG WITH SCHEDULE IN UNNUMBERED I.A.NO OF 2025 IN UNNUMBERED M.A.(ARB.) BEARING FILING NO M.A.(ARB.)NO 4171 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 26.09.2025 AND PHYSICAL COPY FILED ON 07.10.2025 EXHIBIT P5 THE TRUE COPY OF THE EXPLANATION NOTE APPEARING ON THE DOCKET OF EXHIBIT P3 DATED 07.10.2025 EXHIBIT P6 THE TRUE COPY OF THE JUDGMENT IN O.P.(C.) NO 2123 OF 2025 PASSED BY THIS HON'BLE COURT DATED 26.08.2025 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 16 APPENDIX OF OP(C) NO. 3129 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE AGREEMENT EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS DATED 29.02.2020 EXHIBIT P2 THE TRUE COPY OF THE STATUS OF THE CASE AS AVAILABLE IN THE DCMS PORTAL EXHIBIT P3 THE TRUE COPY OF THE UNNUMBERED APPLICATION BEARING FILING NO M.A.(ARB.)NO 4192 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 26.09.2025 AND PHYSICAL COPY FILED ON 09.10.2025 EXHIBIT P4 THE TRUE COPY OF THE JUDGMENT IN O.P.(C.) NO 2123 OF 2025 PASSED BY THIS HON'BLE COURT DATED 26.08.2025 2025:KER:94872 OP(C) Nos. 2776, 2779, 2834, 3129, 3175 of 2025 17 APPENDIX OF OP(C) NO. 3175 OF 2025 PETITIONER EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE RELEVANT PAGES OF THE LOAN AGREEMENT EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS DATED 28.02.2025 EXHIBIT P2 THE TRUE COPY OF THE GOVERNMENT ORDER (MS.) NO 53/2020/HOME DATED 18.03.2022 EXHIBIT P3 THE TRUE COPY OF THE DEFECT NOTED IN UNNUMBERED APPLICATION FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM ALONG WITH ANSWER TO THE DEFECT AS AVAILABLE IN THE DISTRICT COURT CASE MANAGEMENT SYSTEM (DCMS) PORTAL EXHIBIT P4 THE TRUE COPY OF THE UNNUMBERED APPLICATION BEARING FILING NO M.A.(ARB.)NO 4663 OF 2025 FILED BY THE PETITIONER BEFORE THE HON'BLE DISTRICT COURT, ERNAKULAM DATED 25.11.2025 AND PHYSICAL COPY FILED ON 02.12.2025 EXHIBIT P5 THE TRUE COPY OF THE JUDGMENT IN O.P.(C.) NO 2123 OF 2025 PASSED BY THIS HON'BLE COURT DATED 26.08.2025