$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1395/2025 MONEYWISE FINANCIAL SERVICES PVT. LTD. .....Petitioner Through: Ms. Preeti Kumar, Adv.

M: 9711615978 Email: advocatepreety@gmail.com versus ASHIANA ISPAT LIMITED THROUGH ITS DIRECTORS AND ORS. .....Respondents Through: None.

CORAM:

HON'BLE MS. JUSTICE MINI PUSHKARNA

O R D E R

% 02.02.2026

1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) seeking appointment of a Sole Arbitrator for adjudication of disputes between the parties arising out of a Loan Agreement and Deed of Guarantee, both dated

31st March, 2023.

2. It is the case of the petitioner that under the aforenoted Loan Agreement and Deed of Guarantee, a loan of Rs. 75,00,000/- (Rupees Seventy Lacs only) at an interest rate of 16% p.a. was extended to the respondent no. 1 through its directors, i.e., respondent nos. 2 to 5, for the purpose of expanding the business of respondent no. 1.

3. In terms of the Agreement and Deed between the parties, the respondents were obligated to repay the loan amount in 36 equal installments of Rs. 2,63,678/- (Rupees Two Lacs Sixty Three Thousand Six Hundred and Seventy Eight only). However, the respondents committed default in repayment of the disbursed loan amount.

4. The petitioner issued a Loan Recall/Termination Notice on 11^th January, 2025, calling upon the respondents to pay the outstanding amount of Rs. 47,85,601/- (Rupees Forty Seven Lacs Eighty Five Thousand Six Hundred and One only). Despite the same, the respondents failed to pay the outstanding amount.

5. Thereafter, a Notice under Section 21 of the Arbitration Act was issued by the petitioner to the respondents on 04th June, 2025, whereby, the petitioner invoked the Arbitration Clauses, as provided under the Loan Agreement and Deed of Guarantee. Since the respondents did not issue any reply to the said Notice dated 04^th June, 2025, the present petition came to

be filed.

6. This Court notes that upon issuance of notice in the present matter on 08th September, 2025, learned counsel appearing for the respondents had put in appearance on 17^th October, 2025 and made a statement that there was a possibility of settlement. Accordingly, the matter was referred to the Delhi High Court Mediation and Conciliation Centre for mediation. The aforesaid

order dated 17^th October, 2025 reads as under:

“1. Counsel enters appearance on behalf of the respondents and submits that there is a possibility of settlement between the parties and the matter may be referred for mediation.

2. Accordingly, the parties are referred for mediation to Delhi High Court Mediation and Conciliation Centre (‘Mediation Centre’).

3. The parties, along with their respective counsel, shall appear before

the Mediation Centre on 29th October, 2025 at 03:00 PM.

4. List before the Court on 19^th December, 2025.”

7. Pursuant thereto, a Mediation Report dated 13^th January, 2026 has been received from the Delhi High Court Mediation and Conciliation Centre, as per which, the mediation has ended as “Not-Settled”.

8. None appears for the respondents when the matter is called out today. 9. Learned counsel appearing for the petitioner draws the attention of this Court to Clause 8.2 of the Loan Agreement dated 31^st March, 2023, which contains the Arbitration Clause. The same reads as under:

“xxx xxx xxx

8.2. Arbitration: Any disputes, differences, controversies and questions directly or indirectly arising at any time hereafter between the Parties or their respective representatives or assigns, arising out of or in connection with this Agreement (or the subject matter of this Agreement), including, without limitation, any question regarding its existence, validity, interpretation, construction, performance, enforcement, rights and liabilities of the Parties, or termination ("Dispute"), shall be referred to a sole arbitrator duly appointed by the Lender. The language of the arbitration shall be English. The seat of the a