IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment delivered on: November 18, 2022 + ARB.P. 1105/2021 HERO FINCORP. LIMITED ..... Petitioner Through: Mr. Ajay Kohli and Ms. Dipeeka Prasad, Advs.

versus TECHNO TREXIM (I) PVT. LTD. & ORS.

..... Respondents Through: Mr. Uttam Datt and Ms. Sonakshi Singh, Advs. for R-1 Mr. Rishi Raj Sharma and Mr. Rajiv Singh, Advs. for R-2 to R-4 AND + ARB.P. 1186/2021 HERO FINCORP. LIMITED ..... Petitioner Through: Mr. Ajay Kohli and Ms. Dipeeka Prasad, Advs.

versus TECHNO TREXIM (I) PVT. LTD. & ORS.

..... Respondents Through: Mr. Rishi Raj Sharma and Mr. Rajiv Singh, Advs. for R-2 to R-4 CORAM:

HON'BLE MR. JUSTICE V. KAMESWAR RAO

J U D G M E N T

V. KAMESWAR RAO, J

1. At the outset, I may state that since the captioned petitions being Arb. P. 1105/2021 and Arb. P. 1186/2021 arise from the same Signature Not Verified Digitally Signed By:ANIL ARB.P. 1105/2021 and connected matter Page 1 of 24 factual matrix, and have been filed by the same petitioner against the same respondents, I shall proceed to decide the petitions together. The present petitions have been filed by the petitioner under Section 11(5) of the Arbitration and Conciliation Act, 1996 with the following prayers:-

“The Petitioner Company, therefore, respectfully prays as follows:

a) In terms of the Arbitration Clause/Article No.12.10 contained in the Master Facilities Agreement dated 26.12.2017 and further in terms of Clause 31 of the Deeds of Guarantee all dated 26.12.2017, this Hon'ble Court may kindly be pleased to Appoint a "Sole Arbitrator", to adjudicate the claims and disputes between the Petitioner and the Respondents.

b) Cost of the Petition be awarded to the Petitioner and against the Respondents.

c) Any other/further order, which this Hon'ble Court may deem fit and proper, under the facts and circumstances of the case may also be passed in the interest of justice.”

2. The petitioner is a Non-Financial Company incorporated under the provisions of the Companies Act, 1956 and having its registered office at 34, Basant Lok, Vasant Vihar, New Delhi-110057. The petitioner company is engaged inter-alia in the business of rendering finance/loan facilities, to the intending borrowers.

3. The respondent No.1 is a company incorporated under the Companies Act 1956, having its registered office at 806, Devika Tower, 6, Nehru Place, New Delhi- 110019.

4. The Directors and authorised representatives of the respondent Signature Not Verified Digitally Signed By:ANIL ARB.P. 1105/2021 and connected matter Page 2 of 24 No.1 approached the petitioner requesting the grant of a Secured Term Loan. The petitioner inter-alia sanctioned a Loan Facility namely Loan against Property (hereinafter, LAP) for an amount of ₹ 32.00. Crore (also known as Secured Term Loan) and another loan namely Lease Rental Discounting Loan Facility ( hereinafter, LRD) for an amount of ₹ 55.00 Crore in favor of respondent No.1, vide Sanction Letters bearing Reference No. 2692023 and Reference No.2691828 dated December 20, 2017, respectively. Two Master Facilities Agreements and two Supplementary Agreements with regard to LAP and LRD were executed between the respondent No.1 as borrower and the petitioner as lender on December 26, 2017. Arb. P. 1105/2021 has been filed with respect to LAP of ₹ 32 Crore and Arb. P. 1186/2021 has been filed with respect to LRD of ₹55 Crore.

5. The respondent Nos.2 to 4 agreed to guarantee the due repayment of the loans as well as to adhere to the terms, conditions and covenants envisaged in the Agreements by the respondent No.1, in their personal and individual capacity and respondent Nos. 5 to 7 in their respective corporate capacities. The respondent Nos.2 to 7 agreed to guarantee inter-alia the repayment of the said loan facilities as well. Consequently, the respondent Nos.2 to 7 executed separate Deeds of Guarantee; all dated December 26, 2017, in favor of the petitioner, thereby guaranteeing both the loan facilities.

6. Thereafter, upon execution of the Fac