ARB.P./243/2026 of L AND T FINANCE LTD Vs M/S METALORE OVERSEA PVT. LIMITED & ORS. on 16 September 2026

O R D E R

%

16.09.2026

1. This Petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator to adjudicate upon the disputes which have arisen between the Petitioner and the Respondents in relation to the Loan Agreement dated 31.07.2016, as amended by the Addendum Loan Offer Letter dated 19.06.2021 and the Amendatory Agreement dated 24.06.2021.

2. It is stated that Respondent No.1, as Borrower, and Respondent Nos.2 to 4, as Co-Borrowers, with Respondent No.4 also acting as Mortgagor, had availed a term loan facility of Rs.3,40,00,000/- from the Petitioner against the property bearing entire second floor in Residential Plot No.657, Block- C, New Friends Colony, New Delhi, measuring 490 sq. yards (“secured asset/property”).

3. It is stated that in order to secure repayment of the loan facility, the Respondents created an equitable mortgage over the secured asset by depositing the original Conveyance Deed dated 21.02.2002 and Relinquishment Deed dated 20.04.2002. The Petitioner states that it continues to hold a valid and subsisting security interest over the secured asset.

4. It is stated that the Respondents committed defaults in repayment of the loan leading to disputes between the parties.

5. It is stated that Clause 12 of the Loan Agreement dated 31.07.2016 contains an arbitration clause providing for reference of disputes to arbitration in accordance with the Arbitration and Conciliation Act, 1996. Clause 12.5 further provides that the venue of arbitration shall be Mumbai/New Delhi/Bengaluru or such other place as may be determined at the discretion of the Lender/Petitioner herein. The Petitioner has chosen Delhi as the venue of Arbitration.

6. It is stated that, in view of the continuing disputes and outstanding liability, the Petitioner invoked the arbitration clause by issuing a Notice dated 21.08.2025 under Section 21 of the Arbitration and Conciliation Act, 1996, seeking the consent of the Respondents for appointment of a Sole Arbitrator. Under the said notice, the Petitioner had demanded an outstanding amount of Rs. 6,13,89, 301.54/- from the Respondent. It is stated that despite service of the notice invoking arbitration, the Respondents failed to take the requisite steps for appointment of the Sole Arbitrator.

7. The Petitioner has, therefore, approached this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator for adjudication of the disputes.

8. Notice in the Petition was issued on 06.02.2026.

9. In view of the fact that disputes have arisen between the parties and there is an arbitration clause in the Agreement, this Court is inclined to appoint an Arbitrator to adjudicate upon the disputes between the parties.

10. Accordingly, Ms. Varuna Bhandari Gugnani, Advocate (Mob: 9810400605) is appointed as the Sole Arbitrator to adjudicate upon the disputes between the parties.

11. The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.

12. The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within two weeks of entering the reference.

13. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law.

14. Needless to say, nothing in this order shall be construed as an expression on the merits.

15. The present petition stands disposed of in the above terms along with pending application(s), if any.

SUBRAMONIUM PRASAD, J SEPTEMBER 16, 2026 Rahul