Delhi District Court Rps Management And Consultancy Pvt. Ltd vs M/S Moneywise Financial Services Pvt. ... on 20 October, 2022 IN THE COURT OF SH GURVINDER PAL SINGH, DISTRICT JUDGE (COMMERCIAL COURT)02, PATIALA HOUSE COURT, NEW DELHI OMP (Comm.) No. 62/2022 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, Maole Heights, BlockC, Sushant Lok, Phase1, 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 W/o Rahul Kumar R/o H. No. 501, Maole Heights, BlockC, Sushant Lok, Phase1, Gurgaon Galleria DLFIV Haryana ...Petitioners versus M/s Moneywise Financial Services Pvt. Ltd. Through its Managing Director Having its office at: 11/6B, Shanti Chamber, Pusa Road, New Delhi110005 ...Respondent Date of Institution : 18/04/2022 Arguments concluded on : 12/09/2022 Decided on : 20/10/2022 OMP (Comm.) No. 62/2022 RPS Management and Consultancy Pvt. Ltd. & Ors vs M/s Moneywise Financial Services Pvt. Ltd . Page 1 of 35 Appearances : Sh. Rit Arora, Ld. Counsel for petitioners. Sh. Aditya Prasad and Sh. Sriram Kamal, Ld. Counsel for respondent. 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 20/11/2021 passed by Sh. Shiv Singh, Ld. Sole Arbitrator in Arbitration Case ID: A003097 titled 'Moneywise Financial Services Private Limited vs RPS Management and Consultancy Private Limited & Ors.' Ld. Sole Arbitrator awarded Rs. 26,58,568/ with simple interest @ 18% per annum from 29/09/2021 till realization with cost of Rs. 7,500/ in favour of respondent/claimant payable by petitioners, jointly and severally. 2. I have heard Sh. Rit Arora, Ld. Counsel for petitioners; Sh. Aditya Prasad and Sh. Sriram Kamal, Ld. Counsel for respondent and perused the record of the case, the arbitral proceedings record, relied upon precedents, filed brief written arguments on behalf of petitioners as well as on behalf of respondent and given my thoughtful consideration to the rival contentions put forth. 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/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/ claimant, petitioners entered into Loan Agreement dated OMP (Comm.) No. 62/2022 RPS Management and Consultancy Pvt. Ltd. & Ors vs M/s Moneywise Financial Services Pvt. Ltd . Page 2 of 35 29/02/2020 with claimant/respondent wherein petitioner no. 1 was the main borrower and petitioner nos. 2 to 4 were co borrowers to the Loan Agreement. Business of petitioner no. 1 company was hit hard on account of Covid19 pandemic and it faced severe hardship in its business and could not generate enough cash flow. Petitioner no.1 company had borrowed Rs. 25,10,219/ 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 decided to harass the petitioners and started recalled the loan amount. 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 the installments. Petitioner no. 1 was disturbed by the unprecedented scale of the pandemic which had practically shut down everything. Petitioners never received any notice for arbitration from claimant/respondent no. 1 company. Rather, one company, namely M/s Edgecraft Solutions Private Limited, alleged ADR service provider Company issu