Courts may waive statutory requirements for invoking arbitration and filing formal petitions when parties mutually agree to refer disputes to arbitration. Furthermore, courts possess the authority to convert pending interim relief applications into arbitrator-level proceedings to maintain continuity of protection while promoting efficient dispute resolution.

JUDGMENT :

HARISH VAIDYANATHAN SHANKAR, J.

1. The present Petition under Section 9 of the Arbitration and Conciliation Act, 1996 [“Act”], read with Section 151 of the Civil Procedural Code, 1908, seeks the following reliefs:

“a. Direct the Respondents to deposit a sum of Rs. 2,03,41,003.55/( Rupees Two Crores Three Lakhs Forty One Thousand Three and Fifty Five Paise Only) alongwith interest@ 11.65% p.a. has become due and payable as of 04.02.2026 with further overdue charges from 04.02.2026 with the Petitioner or in this Hon'ble Court to secure the Petitioner's claim And;

b. Appoint Court Receiver, High Court, Delhi be appointed as a Receiver under Order XL Rule 1 of C.P.C. in respect of mortgaged property bearing 28/3, Onda Raja Lane Kolkata, Tangka, Kolkata, West Bengal-700015 with a direction to take Possession of the said Assets without giving notice of their visit to the Respondents and for that purpose, this Hon'ble Court be pleased to direct the Concerned Police Station to render Police Assistance for the purpose of taking possession of the said Assets and hand it over to the Petitioner and Petitioner be allowed to sale the same by private treaty the said Assets And;

c. Restrain the Respondents and its respective servants and agents be restrained by an order and injunction of this Hon'ble Court in any manner parting with possession, creating third party rights, alienating and/or encumbering mortgage property bearing 28/3, Onda Raja Lane Kolkata, Tangka, Kolkata, West Bengal - 700015 And;

d. Direct the Respondents to disclose its/their encumbered and unencumbered properties and upon disclosure thereof, the Court Receiver may be appointed on the said property under Order XL Rule 1 of C.P.C. 1908. And;

e. Direct the Respondents to furnish the security of whatsoever nature to the sum of Rs. 2,03,41,003.55/- (Rupees Two Crores Three Lakhs Forty One Thousand Three and Fifty Five Paise Only). And;

f. Direct the respondents to pay for the costs of the present petition jointly or severally And/or;

g. Pass such other or further order(s) and/or direction(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

2. After advancing certain submissions, learned counsel appearing on behalf of the parties, on instructions, submit that they are ad idem that instead of adjudication of the present Petition on merits, the disputes arising inter se the parties be referred to Arbitration in terms of the Loan Against Property Agreement dated 28.02.2018 [“Agreement”] governing the disputes inter se the parties.

3. Material on record indicates that the Arbitration Clause is set out at Clause 12 of the Agreement. The said Clause read as follows:

“Article 12: ARBITRATION

12.1 Without prejudice to any other rights available to the Lender under any other statute to take action against the Borrower, any dispute or difference or claim that arises between parties or any of them touching or concerning this Agreement or any condition herein/therein contained as to the rights, duties or liabilities of parties hereto or any of them either during continuance of the Agreement or after the completion or termination or purported termination hereof shall be referred to Arbitration by a sole Arbitrator appointed by the Lender, according to the provisions of Arbitration & Conciliation Act, 1996 and rules thereunder and any amendment thereto from time to time.

12.2 It is agreed between the parties hereto that nothing contained in Section 17 of Arbitration & Conciliation Act, 1996 shall in any way, effect the right of any of or preclude the p