Arbitration Clause Cannot Be Invoked Once Loan Contract Is Exhausted: Himachal Pradesh High Court

Mehak Aggarwal

9 Jan 2026 5:20 PM IST

  • Arbitration Clause Cannot Be Invoked Once Loan Contract Is Exhausted: Himachal Pradesh High Court

    The Himachal Pradesh High Court has held that a civil suit seeking damages for harassment and mental agony on account of non-issuance of a No Objection Certificate could not be linked to the original loan agreement once the loan was fully repaid. The Court remarked that the loan contract had been exhausted upon complete repayment of the loan amount, and therefore, the subsequent claim for...

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