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Axis Finance Limited vs. M/S Bansal Manish and Associates & Ors.

Original Miscellaneous Petition (Interim, Commercial) · 2026:DHC:8970Decided 9 Oct 2026New Delhi Bench
O.M.P.(I) (COMM.) 360/2026CNR: DLHC010396862026
Justice Om Prakash Shukla

Background

Axis Finance Limited, a lender, had earlier obtained an interim court order (24.08.2026) protecting its interests against the borrower-respondents, who did not appear in these proceedings despite being duly served. The petitioner confirmed that arbitration had already been formally invoked through a Section 21 notice.

Decision Breakdown

The Court directed the petitioner to take concrete steps to constitute the Arbitral Tribunal within three weeks. Once constituted, the present Section 9 petition would automatically be treated as a Section 17 application before the arbitrator, who could continue, modify, or vacate the interim arrangement on its own merits. The existing interim protection was to continue only until then, and would lapse automatically if arbitration wasn't initiated in time; all rights and contentions on the merits were left open.

Lesson Learnt

Interim protection obtained from a court in aid of arbitration is not permanent: it is conditioned on the petitioner actually moving forward to set up the arbitral tribunal within the time given, after which the tribunal (not the court) takes over deciding whether that protection should continue.

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