Here's a simple explanation of a recent court decision in New Delhi about a loan disagreement. The High Court has picked a mediator to help sort out the issue between M/S Paisalo Digital Limited and M/S Sun Corp & Others.
On February 27, 2026, the Delhi High Court looked at a request from M/S Paisalo Digital Limited. They wanted a single mediator to help solve problems from a loan deal made on March 2, 2015. This deal had a rule that if they couldn't solve problems by talking, they would use mediation.
"Any conflict...shall be submitted/referred to the mediation of the Sole Mediator."
The problem started when M/S Sun Corp didn't pay back a loan of ₹2.5 crores given by Paisalo Digital Limited. The mediation rule was used, and a decision was first made on July 10, 2019. However, this decision was later canceled because the mediator was chosen by one side only.
The case went through several rounds in court:
Justice Harish Vaidyanathan Shankar picked Hon’ble Ms. Justice Shailender Kaur as the mediator. The mediation will follow the rules of the Arbitration and Conciliation Act, 1996, with the meetings happening in Delhi.
"The chosen Mediator shall be entitled to a fee according to the Fourth Schedule of the Act..."
The mediator will now handle the meetings, making sure both Paisalo Digital Limited and Sun Corp & Others have a fair chance to share their sides of the story. The goal is to solve the issue without needing more court involvement.
The court has appointed a mediator to help Paisalo Digital Limited and Sun Corp & Others resolve their loan dispute. This decision allows both parties to move forward and find a solution with the mediator's help.
