Bombay High Court
Citibank N. A vs Paramshivam Ponmudi Kaunder And Anr on 14 March, 2019
Author: G.S.Kulkarni
Bench: G.S.Kulkarni
pvr 1 15arbpl225-19.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION PETITION (lodg) NO.225 of 2019
Citibank N.A. ...Petitioner
Versus
1.Paramashivam Ponmudi Kaunder & Anr. ...Respondents
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Mr.Hafeez Patanwala I/b. Vivek Patil & Associates, for the Petitioner.
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CORAM: G.S.KULKARNI, J.
DATED: 14 March 2019
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P.C.:
1. Heard learned Counsel for the petitioner. Learned Counsel for the petitioner states that the respondents are served and affidavit of service to that effect would be filed in the office by tomorrow.
2. The case of the petitioner is that respondent no.1 approached the petitioner for availing financial facility for purchasing vehicle in November, 2016. On 3 November 2016 the petitioner sanctioned the loan and disbursed an amount of Rs.12,00,000/-, Accordingly a loan-cum- hypothecation agreement dated 3 November 2016 was entered into between the parties. There is an arbitration agreement as contained in the said loan-cum-hypothecation agreement.
3. The case of the petitioner is that there was default on the part of the respondents in making payment of the loan. Accordingly, notices were issued to the respondents on 11 October 2017 and 8 January 2018. However, the respondents failed to make any payment. Ultimately by notice dated 24 January 2018 the petitioner has issued a loan recall ::: Uploaded on - 15/03/2019 ::: Downloaded on - 16/03/2019 02:22:05 ::: pvr 2 15arbpl225-19.doc notice. It is stated that as on date the amount outstanding is Rs.7,80,291.97. In these circumstances the petitioner prays for ad-interim reliefs.
4. Having heard the learned Counsel for the petitioner and having perused the averments as made in the petition, it is in the interest of justice that ad-interim reliefs are granted in terms of prayer clauses (a) and (b) which read thus:-
"a) Pending the hearing and final disposal of the arbitration proceedings or at any time after the making of the Arbitral Award but before it is enforced in accordance with Section 36 of the Arbitration and Conciliation Act,1996, Court Receiver, High Court, Bombay be appointed as a Receiver under Order XL of Code of Civil Procedure hereto forcibly seize and seal the said Hypothecated Asset by taking forcible physical possession, as more particularly described in "Exhibit-H", from the Respondents or any other third person, to break/open the premises or lock in the premises without giving notice of their visit to the Respondents or any third person and further to take Police Assistance at the time of execution and to hand over the Physical possession of the said Hypothecated Asset to the Petitioner and the Petitioner be allowed to sell the said Hypothecated Asset by private treaty;
b) Pending the hearing and final disposal of the arbitration proceedings or at any time after the making of the Arbitral Award but before it is enforced in accordance with Section 36 of the Arbitration and Conciliation Act 1996, the Court Receiver be allowed to forcibly take physical possession and to seize and seal the said Hypothecated Asset with the help of police assistance, without notice to the Respondents."
Ordered accordingly.
5. Issue fresh notice to the respondents returnable on 28 March 2018. Petitioner is permitted to serve the respondents by a private service.
6. Stand over to 28 March 2019.
(G.S.Kulkarni,J.) ::: Uploaded on - 15/03/2019 ::: Downloaded on - 16/03/2019 02:22:05 :::