Authority: High Court of Judicature at Bombay

Order Date: 9 September 2026

Case Overview

  • Parties: Petitioner – IIFL Finance Limited; Respondents – Rasul Enterprises and others.
  • Nature of Proceeding: Arbitration petition (Arbitration Petition No. 525 of 2025) filed under Section 9 seeking interim protection pending arbitration.
  • Loan Details: On 27 November 2023, IIFL Finance sanctioned a business loan of Rs 30,00,000 to the respondents; loan agreement executed the same day and funds disbursed.
  • Default: Respondents failed to pay instalments as agreed, leading to continuous default.
  • Recall Notice: A Loan Recall Notice dated 22 April 2025 demanded repayment of the entire outstanding amount within seven days.
  • Outstanding Amount: Petitioner claimed Rs 30,86,213.77 including interest from 14 April 2025 till payment/realisation.
  • Non‑Compliance: Respondents neither replied to the recall notice nor repaid the dues; they also failed to appear before the Court and did not comply with an earlier Court order directing disclosure of movable and immovable assets.
  • Alleged Asset Disposition: Petitioner alleged respondents were attempting to sell or transfer assets to defeat recovery, though no direct evidence was produced.
  • Legal Basis: Court considered principles from Supreme Court’s Essar House (P) Ltd. v. Arcelor Mittal Nippon Steel (India) Ltd. (2022) regarding interim relief under Section 9, emphasizing prima‑facie case, balance of convenience, and the need to protect the subject matter of arbitration.

Final Outcome

  • The Court found a good prima‑facie case in favour of the petitioner and held the balance of convenience favoured interim protection.
  • Order:

1. Attach/Freeze the respondents’ bank accounts to the extent of Rs 30,86,213.77 and restrain withdrawal/transfer from the following account(s):

| Bank Account Holder | Bank Account No. | Bank Name | Branch Address |

| RASUL | 777705350007 | ICICI | ICICI Bank Ltd., 311, West Avenue, Road, Mahakavi Bharathi Nagar, Vyasarpadi, Chennai, Tamil Nadu 600039, IFSC Code: ICIC0004068 |

2. The observations in this order are prima facie and confined to the Section 9 application; the Arbitral Tribunal will decide the dispute on its merits independently.

3. Petition disposed of; no order as to costs.

Topics: Arbitration Interim Relief, Loan Default