RAJIV GADDH Vs. SUBODH PARKASH

JUDGEMENT

(1.) Leave granted.

(2.) This appeal arises from the order dtd. 8/11/2024 passed by the Punjab and Haryana High Court (High Court) whereby application filed by the respondent under Sec. 11 of the Arbitration and Conciliation Act, 1996 (Act) was allowed and sole arbitrator was appointed. In order to appreciate the challenge laid by the appellant to the impugned order, it is necessary to set out relevant facts which are stated hereinafter.

(3.) The parties jointly participated in an auction conducted by Jammu and Kashmir Bank for auction of 550 marlas of land situated in Hoshiarpur, Punjab ('the Hoshiarpur Land'). The primary bid in respect of said land was made through respondent's firm M/s. Aastha Trading Company. A new entity, namely M/s. JMD Special Steel Pvt. Ltd., in which both the parties were directors, was utilized for funding and registration purposes. A loan of Rs.4.30 crores was obtained from HDFC Bank by mortgaging various properties. A Tripartite Agreement dtd. 20/3/2013 was executed between the appellant, the respondent and HDFC Bank to regulate the loan liability and to facilitate release of the mortgaged properties.