% 03.04.2024

1. This hearing has been done through hybrid mode.

Background

2. These are two connected petitions – ARB.P. 396/2024, under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter, ‘the Act’) and O.M.P.(I) (COMM.) 39/2024, under Section 9 of the Act, seeking interim measures in the petition.

3. The petitions arise out of a loan transaction between the Petitioner- M/s. Paisalo Digital Limited and the Respondent No.1- M/s. Sat Priya Mehamia Memorial Educational Trust (Regd.). The Petitioner is recognised as a Non-Banking Financial Company (hereinafter, ‘NBFC’) and is registered with the Reserve Bank of India (hereinafter, ‘RBI’). The Respondent No. 1 is a registered trust under the Indian Trusts Act, 1882. The chronology of events is set out below.

4. The Petitioner extended a total of three loans for a sum of Rs.12 crores to the Respondent No.1, in terms of the hypothecation/loan agreements dated 24th March, 2018. The loans carried an interest rate of 17% per annum, and were repayable in 60 monthly instalments from the date of disbursement, as per the agreements. The Respondent Nos. 2 to 7 stood as guarantors for the aforesaid loans, vide three