Delhi High Court Upholds ₹28 Crore Arbitration Award Against Bajaj Finance

The Delhi High Court has upheld an arbitration award of ₹28 crore against Bajaj Finance, dismissing its challenge in a dispute over a Loan Against Securities (LAS) agreement with stock trader Seetha Kumari under Section 34 of the Arbitration and Conciliation Act, 1996.

The court ruled that Bajaj Finance unlawfully sold pledged securities despite Kumari maintaining adequate margin coverage.

The court found that the financial institution failed to provide the mandatory three-day notice before selling shares, violating the LAS agreement.

The High Court rejected Bajaj Finance’s claims, affirming that the arbitrator’s decision was commercially sound and legally valid, leading to the dismissal of its appeal.