RAGHVENDRA SINGHANIA & ORS. vs BAJAJ FINANCE LIMITED & ORS.

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 11th September, 2025 + O.M.P. (COMM) 204/2023 & I.A. 10700/2023 RAGHVENDRA SINGHANIA & ORS. .....Petitioners Through: Mr. Anirudh Bakhru, Ms. Vasundhara Bakhru, Mr. Nikhil Palli, Ms. Niyati Razdan and Ms. Bhavya Sharma, Advocates. versus BAJAJ FINANCE LIMITED & ORS. .....Respondents Through: Mr. Rajiv Nayar and Mr. Rajshekhar Rao, Senior Advocates with Ms. Shally Bhasin, Mr. Karan Luthra, Mr. Prateek Gupta and Ms. Rachna Dubey, Advocates. CORAM: HON'BLE MS. JUSTICE JYOTI SINGH JUDGEMENT JYOTI SINGH, J. 1. This petition is preferred on behalf of the Petitioners under Section 34 of the Arbitration and Conciliation Act, 1996 (‘1996 Act’) laying a challenge to the arbitral award dated 13.02.2023, passed by the learned Sole Arbitrator. 2. Factual matrix to the extent necessary and as set forth in the petition is that Petitioner No.1 is a high net worth individual with credit worthiness and is engaged in business of investment through advisory services in wealth management. Respondent No.1 is a Non-Banking Financial Institution incorporated under the Companies Act, 1956. Petitioner No.1 approached Respondent No.1 for obtaining a loan of Rs.3 crores which was sanctioned O.M.P. (COMM) 204/2023 Page 1 of 51 Signature Not Verified Digitally Signed By:KAMAL KUMAR Signing Date:15.09.2025 10:25:09 vide letter dated 23.01.2020 against securities, making it a Loan Against Securities (‘LAS’). 3. Pursuant to the sanction letter dated 23.01.2020, Petitioner No.1 and Respondent No.1 entered into a Loan-cum-Pledge-cum-Guarantee Agreement (‘Loan Agreement’), whereby Petitioners No.1 to 3 pledged securities owned by them as collaterals against the borrowings. Since the shares of Petitioners No. 2 and 3 were also pledged, they b