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L and T Finance Ltd vs. Isha Trehan & Ors.

Original Miscellaneous Petition (Interim, Commercial) · 2026:DHC:7612Decided 7 Sept 2026New Delhi Bench
O.M.P.(I) (COMM.) 153/2026CNR: DLHC010149602026
Justice Om Prakash Shukla

Background

L&T Finance had obtained an interim court order in April 2026 protecting its position against the respondents pending arbitration, but months later it still had not paid the court fees needed to formally notify the respondents, nor had it started the arbitration proceedings it was supposed to pursue.

Decision Breakdown

The Court held that a company cannot indefinitely enjoy a one-sided interim protection order without actually pursuing the underlying arbitration. It gave the company one final 45-day extension to actually commence arbitration, warning that the interim protection would automatically lapse if arbitration were not started within that period, and made clear the respondents (once served) could separately ask the arbitration tribunal to lift or modify the protection.

Lesson Learnt

An interim court order obtained to preserve one's position before arbitration is not a permanent shield: a party must actually get the arbitration process moving within a reasonable time, or risk losing that protection altogether.

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