Notice of motion is also taken on record.
The petitioner has preferred the present petition under Section 11(6)
of the Arbitration and Conciliation Act, 1996, seeking appointment of a
learned sole Arbitrator to adjudicate the disputes and differences which
have arisen between the parties in connection with an agreement for Term
Loan dated 27.10.2023 read with Registered Master Terms and Conditions
for Term Loan dated 31.12.2018.
Learned Counsel for the petitioner submits that the petitioner had
advanced a term loan to the respondent no.1 for its working capital
requirements. Pursuant thereto, the petitioner sanctioned the said credit
facility of Rs.1,20,00,000/- and the parties executed an Agreement for Term
Loan dated 27.10.2023 read with the registered Master Terms and
Conditions for Term Loan dated 31.12.2018. The respondent nos. 2 and 3
executed personal guarantees securing due repayment of the loan and
undertook liability co-extensive with that of respondent no.1. Learned
Counsel for the petitioner further submits that the said loan was duly
disbursed which was received by the respondent no.1. However, after
making certain repayments, the respondent no.1 persisted in defaulting in
servicing the loan account. Despite repeated requests and reminders, the
outstanding dues were not regularised. Consequently, the loan account was
classified as a Non-Performing Asset (NPA) on 11.10.2025.
