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27.01.2023

I.A. 1641/2023 (exemption)

1.

Allowed, subject to all just exceptions.

ARB.P. 91/2023

2.

The present petition has been filed by the petitioners under Section 11

of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as

the ‘Act’) seeking appointment of an Arbitrator for adjudicating the

disputes that have arisen between the parties in relation to the Loan

Agreement executed between the parties.

3.

The Arbitration Agreement is contained in Clause 12.18 of the

Agreement, which is reproduced hereinunder:

“12.18. DISPUTE RESOLUTION

In the event of any dispute or differences or claims

arising directly or indirectly out of this Agreement or

in relation to any other documents executed in

connection with the Loan or otherwise, the Parties

undertake to use all reasonable endeavours to resolve

such disputes amicably. If disputes and differences

and/or claims cannot be settled amicably, then all

disputes and differences and/or claims arising

between the Parties hereto in connection with this

Agreement or the interpretation hereof or anything

done or omitted to be done pursuant hereto or the

performance or non performance of this Agreement

This is a digitally signed order.

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The Order is downloaded from the DHC Server on 28/01/2024 at 13:32:02

shall be referred to arbitration. Such disputes,

differences and/or claims arising out of these presents

or as to the construction, meaning or effect hereof or

as to the rights and liabilities of the parties hereunder

shall be settled by arbitration to be held at Mumbai in

accordance with the provisions of the Arbitration and

Conciliation Act, 1996 or any statutory amendments

thereof or any statute enacted for replacement

therefore and shall be referred to a sole arbitrator to

be appointed by TCFSL (hereinafter referred to as

"Arbitrator") and the Arbitrator's award shall be final

and binding on both the Parties hereto. The Parties

agree to have their dispute resolved by fast track

procedure specified in Section 29B of the Arbitration

and Conciliation Act, 1996 (or such other analogous

procedure prescribed under applicable law). The

arbitration shall be held in Mumbai and the expenses

of the arbitration shall be borne by the Borrower. In

the event of death, refusal, neglect, inability or

incapability of the person so appointed to act as an

Arbitrator, TCFSL shall appoint a new Arbitrator.

The award including interim award/s of the

arbitration shall be final, conclusive and binding on

all parties concerned.

Notwithstanding anything contained hereinabove, in

the event due to any change in the legal status of

TCFSL or due to any change or amendment of law or

notification being issued by the Central Government

or otherwise, TCFSL comes under the purview of the

Securitization and Reconstruction of Financial Assets

and Enforcement of Security Interest Act, 2002

("SARFAESI Act") or the Recovery of Debts Due to

Banks and Financial Institutions Act, 1993 (the "DRT

Act"), which enable TCFSL to enforce the security

under the SARFAESI Act or proceed to recover dues

from the Borrower under the SARFAESI Act and/or

the DRT Act, the arbitration provisions hereinbefore

contained shall, at the option of TCFSL, cease to have

any effect and if arbitration proceedings are

commenced but no award is made, then at the option

of TCFSL such proceedings shall stand terminated

and the mandate of the arbitrator shall come to an

end from the date when such law or its

change/amendment or the notification, becomes

effective or the date when TCFSL exercises its option

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 28/01/2024 at 13:32:02

of terminating the mandate of arbitrator, as the case

may be. Provided that neither a change in the legal