O R D E R

Applicant is a non-banking finance company engaged in the business of granting loan on security for purchasing vehicles. The 1^st respondent availed a loan from the petitioner for an amount of Rs.3,50,000/-. Respondents 2 and 3 are the guarantors. Respondents agreed to repay an amount of Rs.4,84,551/- in 36 monthly installments and a hypothecation cum loan agreement was executed on 30.07.2022. A copy of the agreement has been produced as Annexure A. It contains an arbitration clause.

2. The respondents defaulted repayment and the applicant invoked the arbitration clause. A petition under Section 9 of the Arbitration and Conciliation Act was filed before the District Court, Kozhikode which was allowed and the vehicle in question was taken possession. A copy of the order passed by the Additional District Judge – V, Kozikode on 18.06.2025 in M.A (Arb)No.69 of 2025 is produced as Annexure B.

3. Thereafter on 22.04.2025, notices invoking the arbitration clause was issued by the applicant to the respondents. Notices were received by respondents 1 and 3. However notice issued to the 2^nd respondent was returned with endorsement “absent”. In view of Section 3 of the Arbitration an