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NBFC (Claimant) V Freelance Website Designer (Respondent)


This dispute is between a renowned NBFC as the Claimant based in Mumbai and an individual working as a freelance website designer based out of Pune. The claimant company has over two decades of establishment as one of the pioneer NBFCs catering to small to large-ticket-sized loans. The respondent, on the other hand, had switched to a freelancing profile after taking a break from a corporate job, taking a year off work due to maternity reasons, and restarting work from home as a freelancer. Certified and trained from one of the top website designing academies, and having received many rewards and recognition and client appreciation at the workplace, the respondent was confident of being successful as a freelancer too.

Since savings were next to mere and not pursuing a corporate job or collateral that could help avail a bank loan, the respondent approached the claimant for a loan amount of Rs 3 lakhs to procure and set up a basic office, including a top-end workstation, license & app procurement, and social media marketing to fetch clients, etc.

Compared to a salaried person, availing loan is not as easy for a freelancer. Due to the lack of a steady income, banks and other financial lenders also remain vary of this category when it comes to repayment. But the respondent had qualitative proof to clear her KYC and to show her capability to repay the loan, which in fact boosted her chance of getting a loan sanctioned in her name as a freelancer with the Claimant company.

The claimant company had to issue reminders, notices, and warnings when the respondent defaulted on paying three consecutive payments.

PrivateCourt issued an Arbitration notice addressed to the respondent as soon as receiving the invocation request from the Claimant.


The loan amount was credited to the respondent’s bank account after clearing all the screenings and approvals.

The market saw an upswing in digital presence especially post-pandemic when many individuals decided to be masters of their faith and dived into self-employment opportunity. This got good business for the respondent as request for website designing for these business went up. Social media marketing, client testimonials, portfolio and word of mouth publicity got work in for the respondent.
This well-palnned freelancing gig took off smoothly for almost a year and a half, and the respondent managed to clear all the EMIs scheduled. However, a major hurdle cropped up when the respondent landed up cancelling one mega project midway, which was in fact a chance to make it big and also a chance for her to close the loan on foreclosure grounds!

PrivateCourt received an arbitration invokement request from the Claimant NBFC when the respondent defaulted on paying three EMIs consecutively with an outstanding of Rs. 2,13,494.

PrivateCourt Proceedings

The respondent reverted immediately and agreed to abide by the entire procedure as described in the notice.

Our Philosophy
Our Philosophy

नास्ति सत्यसमो धर्मो न सत्याद्विद्यते परम्।

न हि तीव्रतरं किञ्चिद् नृतादिह विद्यते।।

Nāsti Satyasamo Dharmo Na Satyādvidyate Paraṁ.

Na hi Tīvrataraṁ Kiñchid Nr̥tādih Vidyate.

There is no other religion like truth. nothing but the truth. Nothing is more intense than a lie.

सत्य जैसा अन्य धर्म नहीं। सत्य से पर कुछ नहीं। असत्य से ज्यादा तीव्रतर कुछ नहीं।

PrivateCourt requested the respondent to furnish all necessary documents, bank account details, invoice copies, business Whatsapp chats, emails, etc.

Our panel of Neutrals closely vetted this case.

Both parties were requested to join a discussion call to analyse the situation with a transparent approach.

The respondent reasoned out that she had to drop out the one and only project she was handling because her just a-year-old baby had developed un unforeseen lump on the back that needed to be operated immediately. This resulted in her canceling the project because the client wasn’t reafy to compromise on the delivery deadline.

She further had to devote the next two months to taking care of her child.

This drained her financially, and emotionally and brought a complete standstill to her work.

She had no time, no money, and no courage to reply to the default notices or emi reminders sent by the claimant.

On receiving a PrivateCourt notice and being advised by our case managers that there was a way out of this without facing any major legal liabilities, the respondent agreed to connect.

Our panel of experts listed a number of reasons why the Claimant Company should not only restructure the repayment plan but look at the matter more empathetically and give some monetary relief as well. Moreover, since the respondent was successful in starting and running the business as a freelancer, and having business inquiries flooding her DMs was a positive sign of success.

Settlement Agreement

The Claimant Company restructured the outstanding loan amount of Rs. 2,13,494 to be paid in 10 equal instalments without adding any late penalties or interest.

*In case of no defaults, the respondent would be eligible to avail of a higher loan amount without being disbarred because of the current loan repayment default.