K.L.ENTERPRISES LLP Vs. BAJAJ FINANCE LIMITED

JUDGEMENT

(1.) Present petition has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") seeking directions to restrain the Respondent and/or any person claiming through and/or under it, from selling/transferring/alienating and/or encumbering and/or creating any third party rights in respect of the shares of Petitioner Nos. 1 to 5, pledged in favour of the Respondent as security for a loan taken by Petitioner No. 1.

(2.) Case as set out by the Petitioners is that Petitioner No. 1 is a Limited Liability Partnership Firm engaged inter alia in the business of investment including advisory services in wealth management. Petitioner Nos. 2 to 4 have resigned from the Partnership Firm on 31.01.2020 and currently Petitioner Nos. 5 & 6 are partners of Petitioner No. 1. Respondent is a duly incorporated and registered Non-Banking Finance Company.

(3.) Vide a Sanction Letter dated 28.08.2019, Respondent sanctioned a LAS Facility for an additional amount of Rs. 100,00,00,000/- in favour of Petitioners. Petitioner No. 1 already had a sanctioned loan in its favour to the tune of Rs. 250,00,00,000/- and, therefore, as on 28.08.2019 the total amount of sanctioned loan in favour of Petitioner No. 1 was Rs. 350,00,00,000/-. On 11.11.2019, one of the Petitioners executed a Loancum-Pledge Agreement (first Loan Agreement) with the Respondent and vide this Agreement, Petitioners pledged all securities owned by them, to secure the LAS facility and were thereby able to provide security to the extent of Rs. 60,54,12,342/-.