Authority: High Court of Judicature at Bombay

Order Date: 30 September 2026

Case Overview

  • Petitioner: IIFL Finance Limited
  • Respondents: Orchid Facility Management Private Ltd and others
  • Arbitration Petition No.: 125 of 2026
  • Legal Basis: Petition filed under Section 9 of the Arbitration and Conciliation Act, 1996
  • Loan Details: On 19 July 2023, IIFL Finance sanctioned an SME business loan of Rs 20,00,000 to the respondents; the loan agreement was executed the same day and the amount was 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: Rs 17,53,498.98 as on 14 April 2025, together with future interest as per the loan agreement.
  • Non‑Compliance: Respondents neither replied to the recall notice nor cleared the dues. They also failed to appear before the Court despite service on 5 August 2026 and 2 September 2026, and did not disclose movable or immovable assets as ordered.
  • Alleged Asset Disposition: Petitioner alleges respondents are attempting to sell or transfer assets to defeat recovery, though no direct evidence was produced.
  • Service Status: Notice of the Court’s earlier order was returned “Unclaimed,” which is treated as valid service.

Final Outcome

1. The arbitration petition is partly allowed in terms of prayer clause (a).

2. Attachment/Freeze Order: The following bank account of the respondents is frozen to the extent of Rs 17,53,498.98:

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

| Orchid Facility Management Pvt. Ltd. | 6127314692 | Indian Bank | Durgabazar Cuttack, Machhagaon Road, Jagatsinghpur, PO Jagatsinghpur, Pin 754103, IFSC Code: IDIB000J038 |

The respondents are restrained from withdrawing or transferring funds from this account.

3. The observations in this order are prima facie and limited to the Section 9 application; the arbitral tribunal will decide the dispute on its merits.

4. The petitioner must initiate steps to constitute the arbitral tribunal within 90 days from the date of this order.

5. The petition is disposed of with no order as to costs.

Topics: Arbitration, Loan Default, Bank Account Attachment