SONIKA GARG vs MUTHOOT FINANCE LTD & ANR.

Judgment text excerpt

$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision : 08.05.2026 + ARB.P. 388/2026 SONIKA GARG .....Petitioner Through: Mr. Wattan Sharma and Mr. Sarthak Sachdeva, Advocates. versus MUTHOOT FINANCE LTD & ANR. .....Respondents Through: Ms. Aishani Datta, Mr. Shilpinder Singh Sobti and Mr. Anshvendra Singh Chauhan, Advocates. CORAM: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR % JUDGEMENT (ORAL) 1. The present Petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 19961, seeking the appointment of an Arbitrator to adjudicate the disputes inter se parties, in terms of Clause 6 of the Sanction Letters dated 30.11.2021 and 03.06.2022. The said Clause reads as under:- “6. On the demand of Company, it is mandatory to repay loan amount with interest and other charges. For loan repayment, any amount of Rs. 2.00 Lacs or above shall be accepted only through RTGS/NEFT /Digital Payments or cheques. In case of non-demand also, the loan amount along with interest is to be repaid with loan period. If the value of mortgaged gold ornaments (collateral security) becomes less than the total outstanding amount, then it will be mandatory for the borrower to compensate this difference immediately. The borrower shall have to pay in cash or to 1 Act Signature Not Verified Digitally Signed By:HARVINDER KAUR BHATIA Signing Date:11.05.2026 ARB.P. 388/2026 Page 1 of 7 19:33:21 mortgage additional gold ornaments in the appropriate proportion of weight/value. In case of failure to do so by the borrower, the Company shall have right to demand the loan and shall have right to ask the borrower to repay the interest and other expenses on entire amount during the period of currency of loan.” 2. The material on record further indicates that the Petitioner herein