$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 11.12.2024 + ARB.P. 1239/2024 PNB HOUSING FINANCE LTD .....Petitioner Through: Mr. Anish Bhola and Ms. Parul Bhola, Advs.

versus M/S K.K BANIJYA PVT LTD & ORS. .....Respondent Through: Mr. S.K. Singh, Adv.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA SACHIN DATTA, J. (Oral

1. The present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the A&C Act’) seeks constitution of an Arbitral Tribunal to adjudicate the disputes between the petitioner and the respondent nos. 1 to 3, being the parties to the loan transactions entered into between the parties.

2. It is stated that the petitioner company sanctioned and disbursed 11 loans aggregating to an amount of Rs. 12,60,20,477/- (Rupees twelve crores sixty lakhs twenty thousand four hundred and seventy seven). It is relevant to note that the aforesaid loan agreements were secured by two properties belonging to the respondents being:-

i. 3/1 Kumarpura Road, Liluah, Howrah, West Bengal -711204, Mauza Liluah, J.L. No.12, Touzi No. 3989, Khaitan No. 1265, R.S. No. 1975, Dag No. 2482, 2483, 2484, 2490, Ward No. 21, Under Bally Municipality.

Signature Not Verified Digitally Signed By:ROHIT ARB.P. 1239/2024 Page 1 of 5 ii. 56, MCLEOD Street, P.S. Park Street, Ward No. 61, Park Street, Kolkata, West Bengal-700017.

3. Accordingly, the loan documents were executed between the parties on certain terms and conditions, which admittedly contain an arbitration clause as embodied in Article 10.7 and 10.8 thereof. The said clauses are as under:-

“10.7: Governing Law & Jurisdiction This GTC, including all the matters relating to its validity, constructions, performance and enforcement shall be governed by and constructed in accordance with Indian Law. The courts of Delhi will have exclusive jurisdiction in relation to any matter arising under or in connection with GTC or any agreement/ arrangement entered into pursuant to this GTC. However, the parties hereby agree, confirm and undertake that PNBHFL has a right to file its claim or in relation to Amounts Due or any other connected matter(s) in any other competent court in India at its sole discretion.

10.8: Arbitration Any and all the disputes, Claims differences arising out of or in connection with the loan Documents and or the performance of the Loan Documents shall be settled by arbitration to be referred to a sole arbitrator to be appointed by the PNBHFL and the award, thereupon, shall be binding upon the parties the place of arbitration shall be in Delhi or any other place as arbitrator may decide and shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and any statutory amendments thereof. The proceedings of Arbitration Tribunal shall be conducted in English language. Each party has to bear cost of representing its case before the Arbitrator. The cost of arbitration, including fees and expenses of the arbitrator, shall be shared equally by the Parties, unless the award otherwise provides.

Subject to this Article herein, the Borrower(s) further agrees that claims, difference and disputes, arising out of or in relation to dealings/transactions made in pursuant to the Loan Documents including any question of whether such dealings, transactions have been entered into or not, shall be subject to the exclusive jurisdiction of the courts at Delhi only.”

4. The said loan was restructured in October, 2021 and a Supplementary Loan Agreement dated 30.10.2021 is stated to have been executed between the parties. It is stated that thereafter, the respondents neglected to pay the requisite instalments under the loan agreement and, hence, the loan accounts Signature Not Verified Digitally Signed By:ROHIT ARB.P. 1239/2024 Page 2 of 5 were classified as a non-performing asset (NPA) on 11.04.2023. Subsequently, statutory demand notices under Section 13(2) SARFAESI Act, 2002 dated 29.04.2023 and 01.05.2023 were sent by the petitioner to the resp