Authority: High Court of Judicature at Bombay, Commercial Division
Order Date: 7 October 2026
Case Overview
- Parties: IIFL Finance Limited (Petitioner) vs Redeems Clinical Laboratory and its proprietor (Respondents).
- Loan: Business loan agreement dated 16 July 2024 for Rs 10,00,000; loan disbursed same day.
- Default: Respondents failed to pay instalments; Loan Recall Notice dated 1 January 2026 demanded repayment of Rs 7,67,035 plus interest.
- Petition: Filed under Section 9 of Arbitration and Conciliation Act, 1996 seeking interim protection; respondents absent, did not disclose assets despite court direction.
- Court considered prima facie case, respondents' non‑compliance, and risk of asset dissipation.
Final Outcome
- Court partially allowed petition, ordering a debit freeze on all bank accounts of the respondents, including those linked to PAN AVNPJ4340E.
- Observations are prima facie and limited to Section 9 proceedings; arbitral tribunal to decide merits independently.
- Petitioner directed to constitute arbitral tribunal within 90 days from order date.
- Petition disposed of with no order as to costs.
Topics: Arbitration, Loan Default, Interim Relief