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DELHI HIGH COURT
SANJEEV SACHDEVA
IIFL Finance Limited – Appellant
Versus
Vinay Jain – Respondent
JUDGMENT
Sanjeev Sachdeva, J. (Oral)--In Arbitration petition 1147/2021, petitioner seeks appointment of Arbitral Tribunal pursuant to a Credit Facility Agreement dated 01.11.2017 and in Arbitration petition 1170/2021, petitioner seeks appointment of Arbitral Tribunal pursuant to the Deed of Guarantee dated 01.11.2017.
2. Both the documents are alleged to have signed by Mr. Vinay Jain, respondent in Arbitration petition 1147/2021 and the director of the respondent in Arbitration petition 1170/2021.
3. As per the there was a loan transaction between AVJ Developers India Private Ltd. which had availed of three term loans of Rs.25 crores on 09.01.2015, Rs.75 crores on 13.01.2015 and Rs.35 crores on 29.04.2016 respectively. In respect of the said term loan of Rs.35 crores, it is alleged that only Rs.23 crores were disbursed. The total amount disbursed as per the petitioner to the said debtor, AVJ Developers India Private Ltd. was Rs.123 crores. The three loans had become irregular in the month of August, 2017.
4. As per the petitioner, as the management of the said borrower wanted to regularize the three loan accounts, petitioners were approached by the Directors of AVJ Developer
Allegations of fraud do not inherently preclude arbitration unless substantiated by evidence; agreements signed after release from custody uphold their validity.
The court established that serious allegations of fraud are arbitrable and appointed an arbitrator to adjudicate the claims and counterclaims.
A unilateral right of appointment for an arbitrator in an arbitration agreement is impermissible; however, notice of intent to arbitrate, even when lacking technical precision, can suffice for procee....
Disputes related to Joint Venture Agreement must be resolved via arbitration, affirming validity of the arbitration clause despite claims of termination.
Allegations of fraud and forgery do not inherently preclude the jurisdiction of an arbitral tribunal unless they directly impinge upon the arbitration agreement itself.
A party does not have to name an Arbitrator unless mutual consent exists, emphasizing the validity of the Trigger Notice in seeking arbitration and the appointment of a Sole Arbitrator.
The arbitration agreement binds all parties, including non-signatories, and disputes must be referred to arbitration despite objections on limitation and jurisdiction.
Arbitration agreements remain enforceable despite allegations of fraud if not serious; parties must resolve disputes through arbitration as per contract terms.
Personal guarantees impose binding restrictions on asset dealings, reaffirming the need for arbitration in disputes regarding mortgages and lending agreements.
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