TATA CAPITAL LTD Vs. MAVEN INDUSTRIES LTD

JUDGEMENT

(1.) The Petitioner is a financial institution, has invoked Section 9 of the Arbitration and Conciliation Act, 1996 (for short, the Arbitration Act), to secure the loan amount and the property, mortgaged with them by the Respondents, as there exists arbitration agreement between them.

(2.) Respondent No.1 company executed a loan agreement. Respondent Nos.2 to 4 have executed a Personal Guarantee and mortgaged their personal property also and promised to repay the loan on demand or for defaults or for delay of Respondent No.1. The Personal Guarantees have been continued and still subsisting.

(3.) Admittedly, the Petitioner has knowledge that the Respondent has filed reference under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, SICA Act) before the Board of Industrial and Financial Reconstruction (for short, BIFR ). The same is still pending. The Respondents have also appeared before the BIFR.