Delhi District Court
Hdfc Bank Ltd vs Laxmi Chaudhri on 19 April, 2011
:1:
IN THE COURT OF SHRI I.S.MEHTA
DISTRICT JUDGE IX DWARKA DISTRICT COURT
DELHI.
Arbitration Petition No. 176/11
HDFC Bank Ltd. .....Petitioner
Versus
Laxmi Chaudhri .....Respondent
ORDER
This is a petition under Section 9 of The Arbitration & Conciliation Act, 1996 filed by the petitioner, HDFC Bank Ltd. through its Authorised Representative, Shri Gaurav Lakhanpal against respondent Laxmi Chaudhri.
2. In brief the facts of the present case, as stated, are that the petitioner is a banking company and engaged in the business of banking, financing and providing loan facilities to the customers for purchase of vehicles, machinery etc. The respondent approached the petitioner bank for loan facility for purchase of vehicle "HYUNDAI SANTRO GLS". Petitioner granted personal loan of Rs. 3,00,000/- which was to be paid in 60 equal installment of Rs. 7,137/- each. A loan-cum-hypothetication agreement dated 01.08.2008 to this effect was executed at between the parties to the effect that any disputes, differences and, or claims arising out of this transaction shall be referred to the sole arbitrator. The respondent failed to maintain financial discipline and sum of Rs. 224598.15/- is outstanding against the respondent. The petitioner issued a notice dated 05.04.2011 was also sent to the respondent to make good the default but to no effect. Hence, present petition has been filed by the petitioner praying to appoint :2: Shri Vikas Sabharwal /Abhishek Mukh, Collections Managers of the petitioner as receiver to take the custody of the Vehicle in question.
3. An application for ex parte appointment of the receiver to take possession the said vehicle has also been filed along with the petition.
4. I have heard Shri Arbind Singh, Ld. counsel for the petitioner and perused the loan application and loan agreement.
5. From the perusal of loan agreement, it shows that there is an arbitration clause i.e. 25 and as per this clause if any dispute arising under this agreement is below the pecuniary jurisdiction limit of the Debt Recovery tribunals established under recovery of debt due to bank and financial institution act, 1993 (51 of 1993), then such dispute shall be referred to arbitration in accordance with the provisions of Indian Arbitration & Conciliation Act, 1996 as may be amended, or re-enactment, by sole arbitrator appointed by the Bank".
6. Section 9 of the Arbitration & Conciliation Act, 1996 provides as under :
"Interim measure etc. by Court - A party may, before or during arbitral proceedings or at any time after making of the arbitral award but before it is enforced in accordance with Section 36, apply to a court......
(i) ***
(ii) for an interim measure of protection in respect of any of the following matters,namely:-
(a) the preservation, interim custody or sale of any goods which are subject matter of the arbitral proceedings; or
(b) ***
(c) *** :3:
(d) interim injunction or the appointment of a receiver;
(e) *** and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it."
7. The available documents on record and in view of the Section 9 of Arbitration & Conciliation Act, 1996, I find it is a fit case to grant interim custody of the vehicle to secure the amount due and payable to the petitioner by the respondent is made out. Accordingly, Shri Vikas Sabbharwal is appointed as a receiver in this case to take into custody the Vehicle make HYUNDAI SANTRO GLS bearing registration no. DL8CS2522, Engine No.G4HG8M496814 and Chasis No.MALAA51HR8M317956F from wherever and in whosoever's possession it is. He may seek the police aid, if so required for repossessing the vehicle in question. He shall make an inventory in respect of the attachments in the vehicle and copy of the same shall be handed over to both the parties. He shall also make note of the inventory itself. He shall also give an appropriate receipt to the person from whom the possession of the vehicle is taken. He shall file his report before the next date of hearing. The vehicle in question will not be disposed of without permission of the court.
Announced in open court on 19.04.2011 (I.S Mehta) District Judge-1X District Court, Dwarka Delhi.