Binoy Trading Company And Anr vs Tata Capital Financial Services … on 20 August, 2025

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The Court:

1. The appeal arises out of an interim order dated November 22, 2025

passed by the learned arbitrator. The learned arbitrator, upon

considering the rival contentions of the parties and upon taking into

account the admitted position of extension of loan/credit facility by the

respondent to the appellant and default in repayment thereof, by an

interim order imposed a second charge on the personal property of the

petitioner being premises no.4A/1, Tangra, Second Lane, Kolkata – 700

046, P.S.- Entally, Ward No.58, Kolkata Municipal Corporation.

2. Mr. Dey, learned advocate for the petitioner submits that the IDFC

First Bank Limited had a first charge on the property and the said

bank should have been impleaded in the proceeding, before any order

attaching the property could be passed. The learned Arbitrator

considered such prayer but rejected the same with reasons. It was held

that the bank was neither a necessary nor a proper party. The bank

was not a signatory to the agreement between the parties, and the

learned Arbitrator did not have jurisdiction to decide any issue between

the appellants and the bank. The loan agreement was executed

between the respondents and the claimant. The adjudication before

the learned tribunal was restricted to the disputes arising out of the

loan agreement and as such, adding the bank would be beyond the

scope of the reference.



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