# In the matter of SREI Equipment Finance Ltd. vs. Whitefield Papermills Ltd And Anr.

> HC judgment dated 2025-02-24. Citation: TCN-2025-HC-00040. Srei Equipment Finance Limited filed an application for the appointment of an arbitrator in a…

- **Court:** HC
- **Order date:** 24 Feb 2025
- **Citation:** TCN-2025-HC-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/srei-equipment-finance-ltd-vs-whitefield-papermills-ltd-and-anr-125d0056

## Summary

### Background

Srei Equipment Finance Limited filed an application for the appointment of an arbitrator in a dispute with Whitefield Papermills Ltd and Anr. The loan agreement between the parties, dated July 1, 2019, contains an arbitration clause. The applicant contends that disputes should be referred to arbitration. The respondents opposed the application, alleging fraud and raising concerns about the validity of the agreement and the notice invoking arbitration.

## Facts

Srei Equipment Finance Limited and Whitefield Papermills Ltd and Anr. entered into a loan agreement dated July 1, 2019, which included an arbitration clause. A dispute arose between the parties, leading Srei Equipment Finance Limited to file an application for the appointment of an arbitrator. Whitefield Papermills Ltd and Anr. opposed the application, alleging that the agreement was induced by fraud and that the transactions were fraudulent. They also argued that the Reserve Bank of India had indicated that the transaction between the petitioner and the respondents was a fraudulent one before the NCLT, Kolkata Bench. The respondents further contended that the notice invoking arbitration was defective and that the agreement was not properly certified. The Reserve Bank

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## Issues and analysis

### Issue 1: Whether the disputes between Srei Equipment Finance Limited and Whitefield Papermills Ltd and Anr. …

**Ratio:** The Arbitration and Conciliation Act imposes an affirmative obligation on every judiciary

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**Reasoning:** The court considered the scope of its jurisdiction as a referral court, which is

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**Interpretation:** The court interpreted the relevant provisions of the Arbitration and

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**Application:** The court applied the principle that arbitration should be favored unless there

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## Parties

- **Judges:** Shampa S…
- **Appellants:** SREI Equipment…
- **Respondents:** Whitefield…
- **Other parties:** Kohi…
- **Advocates:** Jishnu…; Swatarup Ba…; +7 more

## Timeline

- **2019-07-01 — Loan Agreeme…**: Date of the loan agreement between Srei Equipment Finance Limited and Whitefield…
- **2017-10-26 — High Court…**: Order by the High Court of Judicature at Hyderabad staying steps taken by the Government…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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