DATABIT TECHNOLOGIES PVT. LTD. AND ORS vs RED FORT CAPITAL FINANCE COMPANY PRIVATE LIMITED

Judgment text excerpt

$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 06th JANUARY, 2026 IN THE MATTER OF: + ARB. A. (COMM.) 1/2026 DATABIT TECHNOLOGIES PVT. LTD. AND ORS .....Petitioners Through: Mr Ram Avtar Sharma, Mr Mohit Sharma, Ms Dinki Arora, Ms Bhumika, Ms. Dhanushree, Advocates versus RED FORT CAPITAL FINANCE COMPANY PRIVATE LIMITED .....Respondent Through: CORAM: HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD JUDGMENT (ORAL) SUBRAMONIUM PRASAD, J. I.As. 121-22/2026 (Exemption) Allowed, subject to all just exceptions. ARB. A. (COMM.) 1/2026, .A. 120/2026, I.A. 123/2026 1. The present Appeal under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Arbitration Act’) has been filed challenging the Order dated 25.09.2025, passed by the learned Sole Arbitrator in an Application filed by the Respondent herein under Section 17 of the Arbitration Act. 2. By the impugned Order, the learned Sole Arbitrator has directed the Signature Not Verified Signed By:RAHUL SINGH ARB. A. (COMM.) 1/2026 Page 1 of 9 Signing Date:12.01.2026 20:56:09 Appellants to furnish a bank guarantee of Rs.1,90,98,322/- in favour of the Respondent herein as an interim measure during the pendency of the arbitration proceedings. 3. Shorn of unnecessary details, the facts, in brief, leading to the filing of the present Appeal are as under: a. It is stated that in the year 2022, the Appellants approached the Respondent herein, which is a registered Non-Banking Financial Company, seeking a financial facility of Rs.2,40,00,000/- for the purpose of purchasing equipment and meeting working capital requirements. b. On 05.09.2022, a Term Sheet was executed between the parties, pursuant to which the Respondent agreed in principle to extend the facility and initiated steps for c