Summary: Tata Capital Housing Finance Limited filed for arbitration against Inderjeet Sahni because of problems with paying back a loan. The court chose someone to handle the arbitration and put temporary rules in place to protect the property used as collateral in Raipur.
Tata Capital Housing Finance Limited, a company that provides loans, gave Rs. 2.24 crores to Inderjeet Sahni and others through a "Home Equity" product. The loan was backed by land in Tatibandh, Raipur, and was adjusted to Rs. 2.34 crores in June 2021. However, missed payments led to the loan being marked as a Non-Performing Asset (NPA) on January 3, 2023.
Tata Capital asked for arbitration under Section 11 of the Arbitration and Conciliation Act, 1996, because they couldn't agree on repayment issues. They also asked for temporary rules under Section 9 to stop the sale or transfer of the property used as collateral.
"The arbitration proceedings shall be in English language. Cost of arbitration shall be borne by the Obligors."
Justice Sandeep V. Marne chose Ms. Pooja Khandeparkar as the arbitrator to settle the disputes. The court decided that Mumbai was the place where the arbitration would take place, giving it authority over the case.
Because the property was combined with nearby properties, Tata Capital couldn't take control of the land used as collateral. The court ordered the appointment of a Court Receiver to mark out the property and stop any sale or transfer while arbitration is ongoing.
"Pending the hearing and disposal of arbitration proceedings... an order of injunction restraining the Respondents from selling, transferring, alienating... the property."
Tata Capital argued that arbitration and actions under the SARFAESI Act could happen at the same time, as the latter are about enforcing rights, not deciding who is right or wrong. The court agreed, noting the difference between enforcing rights under SARFAESI and deciding disputes in arbitration.
The court decided that arbitration is important for solving money-related disputes while keeping secured assets safe. The temporary rules make sure that the property stays the same during the legal process.
