Arbitration & Non-signatory successor company of erstwhile lender merged company
Tata Capital Finance Services Limited sanctioned business loan to the respondent.
Tata Capital Financial Services Limited and Tata Cleantech Capital Limited merged with Tata Capital Limited. On and from 1.1.2024, all properties, assets, rights, benefits, interest, duties, obligations, liabilities, contracts, agreements, securities, etc; of two companies
On 12.8.2024, the Tata Capital Limited issued loan recall notice to the respondent. However, no payment was made.
On 7.11.2024, the petitioner issued notice of arbitration. There was no response.
The petitioner filed section 11 petition for appointment of arbitrator.
HELD even if the petitioner is non-signatory but in view of the merger the petitioner being the successor of the erstwhile lender, the petition is maintainable. Merger is a transaction that combines companies or assets. All assets and liabilities of the merging companies are transferred to the surviving entity, meaning that the new company assumes all the rights and legal obligations of both the original companies. Further adjudication is left to the Arbitrator.
Judgment dated 7.4.2025 of the High Court at Calcutta in AP-Com/1035/2024 of Tata Capital Limited Vs. Krishna Kant Tiwari
