MANGAL CREDIT AND FINCORP LIMITED THROUGH ITS AUTHORISED REPRESENTATIVE MR DHIRAV KISHOR VEERA vs GBL CHEMICAL LIMITED

Judgment text excerpt

906-CARAP-119-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION APPLICATION NO. 119 OF 2024 Mangal Credit And Fincorp Limited Through Its …Applicant Authorised Representative Mr. Dhirav Kishor Veera Versus GBL Chemical Limited & Ors …Respondents Mr. Pankaj Jain a/w Pradeep Purohit i/b P. D. Jain & Co. Jain & Co., for the Applicant. Mr. Chirag Mody, a/w Yash Momaya, Parag Khandhar, Tapan Radkar, Anaheeta Verma i/b DSK Legal, for Respondent Nos.1 & 2. CORAM : SOMASEKHAR SUNDARESAN, J. DATE : JUNE 18, 2025 ORAL JUDGMENT : 1. This is an Application filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“ the Act”) seeking reference of disputes and differences between the parties pursuant to which the four Respondents have been designated as borrowers in respect of a loan extended by the Applicant. The Loan Agreement is dated March 30, 2024. The arbitration clause is contained in Clause 8.2 (found at Page 46 of the Digitally signed by ASHWINI Application). In the interest of brevity, the arbitration agreement is not ASHWINI JANARDAN JANARDAN VALLAKATI VALLAKATI Date: 2025.06.24 10:45:11 +0530 Page 1 of 10 June 18, 2025 906-CARAP-119-2024.doc being extracted here. Suffice it to say, that this matter falls within the jurisdiction of this Court. 2. The primary objection from the Learned Counsel on behalf of Respondent Nos.1 and 2 is that the factual matrix underlying the loan agreement would demonstrate that the loan was a product of fraud. Learned Counsel on behalf of these Respondents would even suggest that the Applicant may be party to the fraud. Consequently, he would submit that since fraud vitiates all solemn acts and would lead to disputes not being arbitrable, this Ap