Delhi District Court Rps Management And Consultancy Pvt. Ltd vs M/S Moneywise Financial Services Pvt. ... on 8 June, 2022 IN THE COURT OF SH GURVINDER PAL SINGH, DISTRICT JUDGE (COMMERCIAL COURT)02, PATIALA HOUSE COURT, NEW DELHI OMP (Comm.) No. 03/2022 1. RPS Management and Consultancy Pvt. Ltd. Through its Authorized Signatory Rahul Kumar Having its registered office at: 1256 SF, Dayanand Colony, Gurugram, Haryana122001 2. Rahul Kumar S/o R.B. Sharma R/o H. No. 501, Sushant Lok 1, Maple Heights Gurgaon, Galleria DLFIV Haryana 3. Salil Kumar S/o Ram Sharan Prasad R/o RT603, Royal Tower, Shipra Suncity Indirapuram, Ghaziabad, Uttar Pradesh201014 4. Sushma Kumari R/o H. No. 501, Sushant Lok 1, Maple Heights Gurgaon, Galleria DLFIV Haryana ...Petitioners versus 1. M/s Moneywise Financial Services Pvt. Ltd. Through its Managing Director Having its office at: 11/6B, Shanti Chamber, Pusa Road, New Delhi110005 2. M/s Edgecraft Solutions Private Limited Through its Managing Director 3rd Floor, Churchgate House, 32 Veer Nariman Road, Hutatma Chowk, Mumbai City MH 400001 IN OMP (Comm.) No. 03/2022 RPS Management and Consultancy Pvt. Ltd. & Ors vs M/s Moneywise Financial Services Pvt. Ltd. &Ors Page 1 of 39 3. Sh. Arif Mohammed Madani (Ld. Sole Arbitrator), Retired District Judge 302, 3rd Floor, Felicity Tower, Near Mahanagar Times Sahkar Marg, Jaipur ...Respondents Date of Institution : 04/01/2022 Arguments concluded on : 21/05/2022 Decided on : 08/06/2022 Appearances : Sh. Rit Arora, Ld. Counsel for petitioners. Sh. Amit Kumar Sinha, Ld. Counsel for respondent no. 1 JUDGMENT 1. Petitioners had filed the present petition under Section 34 of The Arbitration and Conciliation Act, 1996 (herein after referred as The Act), seeking setting aside of the impugned arbitral award dated 14/09/2021 passed by Sh. Arif Mohammed Madani, Ld. Sole Arbitrator in Arbitration Case ID: A002767 titled 'Moneywise Financial Services Private Limited vs RPS Management and Consultancy Private Limited & Ors.' Ld. Sole Arbitrator awarded Rs. 5,80,792/ with simple interest @ 18% from 25/07/2021 till realization with cost of Rs. 7,500/ in favour of respondent no. 1/claimant payable by petitioners, jointly and severally. 2. I have heard Sh. Rit Arora, Ld. Counsel for petitioners; Sh. Amit Kumar Sinha, Ld. Counsel for respondent no. 1 and perused the record of the case, replies of respondent nos. 1 and 2 to petition, the arbitral proceedings record, relied upon precedents, filed brief written arguments on behalf of petitioners as well as on behalf of respondent nos. 1 and 2 and given my thoughtful consideration to the rival contentions put forth. OMP (Comm.) No. 03/2022 RPS Management and Consultancy Pvt. Ltd. & Ors vs M/s Moneywise Financial Services Pvt. Ltd. &Ors Page 2 of 39 3. Shorn of unnecessary details, the relevant facts of the case of petitioners as well as arguments set up by petitioners through Ld. Counsel are as follows. Respondent no. 1 company/claimant approached petitioners to provide business loans claiming to be reputed Non Banking Financial Company (in short NBFC). Being impressed with the assurances of customer friendly services by respondent no. 1/claimant, petitioners entered into Loan Agreement dated 27/07/2020 with claimant/respondent no. 1 wherein petitioner no. 1 was the main borrower and petitioner nos. 2 to 4 were coborrowers to the loan agreement. Business of petitioner no. 1 company was hit hard in Covid19 pandemic and it faced severe hardship in its business and could not generate enough cash flow. Petitioner no.1 company had borrowed Rs. 5,02,000/ vide loan agreement, above said but defaulted on few installments. Instead of appreciating the difficult circumstances and providing petitioner no. 1 company with some time to make installments and/or regularize its account; claimant/respondent no. 1 decided to proceed with impugned arbitral proceedings. Multiple requests were made by petitioner no. 1 to claimant/ respondent no. 1 to restructure the loan availed by it and provide some time to it to repay t