Delhi High Court - Orders
Mrs. Nidarshana Gowani vs M/S India Bulls Commercial Credit Ltd on 31 January, 2024
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~50
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(I) (COMM.) 421/2023, I.A. 25859/2023, I.A. 25860/2023
MRS. NIDARSHANA GOWANI ..... Petitioner
Through: Mr. JS Bakhshi, Sr. Adv. with Mr.
Yogesh Swaroop, Mr. DD Sharma,
Mr. Ashraf Ahmad Shaikh, Mr. Ajay
Sharma, Advs.
versus
M/S INDIA BULLS COMMERCIAL CREDIT LTD.
..... Respondent
Through: Mr. Rajiv Nayyar, Sr. Adv. and Mr.
Sunil Dalal, Sr. Adv. with Mr. Rishi
Agrawala, Mr. Ankit Banati, Mr.
Tejasvi Chaudhary, Ms. Tarini
Khurana, Mr. Vikram Choudhary,
Mr. Nikhil Beniwal, Mr. Navnish
Bhati, Ms. Manisha Sarda, Advs.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 31.01.2024
1. This is a petition under section 9 of the Arbitration and Conciliation Act, 1996 seeking interim reliefs on account of disputes arising out of loan agreement dated 31.03.2021.
2. In the petition under section 11 of the Arbitration and Conciliation Act, 1996 filed by the petitioner, being ARB.P. 974/2023, this Court has already issued notice on 26.09.2023.
3. Mr. Nayar and Mr. Dalal, learned senior counsels appearing for the 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 05/02/2024 at 21:05:43 respondents oppose the maintainability of the present petition under section 9 and rely on the observations in Femina Developers Private Ltd. vs. Indiabulls Housing Finance Limited, (2022) SCC Online Del 4487, Indiabulls Housing Financing Ltd. vs. Shipra Estates Ltd., Arb (A)(Comm.) 36/2022 dated 21.02.2023 and Bell Finvest India Limited & Ors. vs. A U Small Finance Bank Limited, ARB.P. No. 453/2022 to state that the present proceedings do not fall within the scope of the Arbitration and Conciliation Act, 1996 but fall within the jurisdiction of the DRT and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFESI Act, 2002).
4. On the other hand, Mr. Bakshi, learned senior counsel for the petitioner has drawn my attention to a decision of the coordinate bench of this court in ARB.P. No. 251/2023 in "Aditya Birla Finance Limited vs. Shri Jagannath Memorial Educational Trust and Ors." as well as judgment of M.D. Frozen Food Exports Pvt. Ltd. vs. HeroFincorp Ltd." 2017 (16) SCC 741 to urge that the proceedings under SARFAESI Act, 2002 and Arbitration and Conciliation Act, 1996 can proceed simultaneously.
5. The respondent, even though is a financial institution however is not covered under the notification issued under section 2(h) of the Recovery of Debts and Bankruptcy Act, 1993 ('RDB Act'), or under the definition of bank under section 2(d) of the RDB Act or under the definition of financial institution under 2(h) of the RDB, Act.
6. Hence, the issue which arises for consideration of this court is that whether the proceedings under the Arbitration and Conciliation Act, 1996 would lie considering the said fact that the respondent who cannot invoke 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 05/02/2024 at 21:05:43 the provisions of the RDB Act but seeks to invoke proceedings under SARFESI Act.
7. For the said reasons, issue notice. Mr. Banati, learned counsel for the respondent accepts notice. The reply has already been filed.
8. List on 15.03.2024 for arguments.
9. In the meanwhile, the respondent are restrained from selling, alienating, creating third party rights in property being Flat No. 402, 4th Floor, Chandra Sagar CHSL, near BMC Quarters, Worli Hill Road Worli Thekkadyy, Worli, Mumbai, Maharashtra 400 018 till the next date of hearing.
JASMEET SINGH, J JANUARY 31, 2024/DM Click here to check corrigendum, if any 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 05/02/2024 at 21:05:44