Calcutta High Court
M/S. Citicorp Finance (India) Ltd vs Bhagawandas Auto Finance Ltd. & Anr on 15 July, 2008
Author: Patherya
Bench: Patherya
AP No. 360 of 2008
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
M/S. CITICORP FINANCE (INDIA) LTD. Petitioner/Applicant
Versus
BHAGAWANDAS AUTO FINANCE LTD. & ANR. Respondent
For Petitioner : Mr. S. Mukherjee, Advocate BEFORE:
The Hon'ble JUSTICE PATHERYA Date : 15th July, 2008.
The Court : Leave under Clause 12 of the Letters Patent is granted.
This is an application filed under Section 9 of the Arbitration and Conciliation Act, 1996.
The case of the petitioner is that by agreement dated 1st December, 2006 sums were advanced for purchase of vehicles to the respondents. The said sums were to be repaid in 58 monthly instalments. Except for payment of Rs.7,48,869/- no further sums have been paid by the respondents to the petitioner. By letter dated 18th January, 2008 the petitioner has terminated the agreement and called upon the respondents to deliver up possession of the said vehicles. By letter dated 9th July, 2008 the disputes and differences have been referred to arbitration. In spite of receipt of letter dated 18th January, 2008 no step has been taken by the respondents to make payment or hand over possession of the said vehicles, hence the instant application has been filed for interim relief.2
No notice of this application has been served on the respondents as the petitioner apprehends that upon receipt of notice steps will be taken to alienate and/or encumber the vehicles in question.
Having considered the facts of the case and in view of the cheques issued being dishonoured on ground of 'exceeding arrangement' the respondents are directed not to realize sums from its customers, Hindustan Petroleum Corporation Limited, Mumbai and Metro Dairy Limited, Kolkata without leaving a sum of Rs.32 lakhs which is due and payable on date by the respondents to the petitioner.
Matter is made returnable on 29th July, 2008. The petitioner is directed to serve a copy of this application along with the order passed today on the respondents.
Liberty is granted to the respondents to seek modification and/or variation of the order passed today upon notice to the petitioner.
Interim order passed today to continue till 31st July, 2008.
Letter dated 9th July, 2008 be kept on record. All parties including Hindustan Petroleum Corporation Limited, Mumbai and Metro Dairy Limited, Kolkata are to act on a xerox signed copy of this order on the usual undertakings.
( PATHERYA, J.) pa 3