Calcutta High Court
Srei Equipment Finance Limited vs Indian Mining Works Pvt. Ltd. And Ors on 28 November, 2017
Author: Ashis Kumar Chakraborty
Bench: Ashis Kumar Chakraborty
ORDER SHEET
AP 995 of 2017
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
ORIGINAL SIDE
SREI EQUIPMENT FINANCE LIMITED
Versus
INDIAN MINING WORKS PVT. LTD. AND ORS.
BEFORE:
The Hon'ble JUSTICE ASHIS KUMAR CHAKRABORTY
Date : 28th November, 2017.
Appearance:
Mr. Utpal Bose, Sr. Adv.
Mr. R.N. Ghose, Adv.
Mr. Mainak Swarnakar, Adv.
...for the petitioner.
Ms. Soma Kar Ghosh, Adv.
Mr. Sanjoy Kumar Ghosh, Adv.
...for the respondents.
The Court : This is an application under Section 9 of the Arbitration & Conciliation Act, 1996 (in short, "the Act of 1996") at the instance of the financier for appointment of a Receiver to take possession of the various hypothecated assets from the respondents. It appears that the disputes between the parties relating to the agreement no.116410 dated September 22, 2016 were referred by the petitioner to an Arbitrator. In the said arbitral proceeding the petitioner filed an application under Section 17 of the Act of 1996 and obtained an order for 2 appointment of Receivers to take possession of the 16 (sixteen) hypothecated assets from the respondents. However, the Receivers appointed by the said Arbitrator took possession of only one hypothecated asset. Subsequently, the said Arbitrator recused himself from the arbitral proceeding and vacated the order of appointment of Receivers passed by him.
It is submitted on behalf of the petitioner that although the erstwhile Arbitrator had vacated the order dated July 31, 2017 for appointment of Receivers, but one of the hypothecated assets which was taken over possession by the Joint Receivers is presently lying in the control and custody of the petitioner at Ranchi.
Both the parties have agreed to the appointment of a new Arbitrator for adjudication of the disputes arisen between them relating to the said agreement no.116410 dated September 22, 2016. The petitioner, however, submitted that until the new Arbitrator enters upon reference, this Court should appoint a Receiver to take possession of the aforementioned hypothecated asset, which is lying in the custody and control at Ranchi.
Since the order of appointment of Receivers passed by the learned erstwhile Arbitrator dated July 31, 2017 had been vacated, I find that it would be appropriate to appoint a new Receiver only in respect of the asset which was taken over 3 possession by the Joint Receivers in terms of the order dated July 31, 2017 passed by the learned Arbitrator.
Accordingly, Mr. Vivek Basu, Advocate, Bar Library Club, is appointed as the Receiver to take actual physical possession of the hypothecated asset mentioned at paragraph 18 which is lying in the custody and control of the petitioner at Ranchi.
The Receiver shall be entitled to an initial remuneration of 1200 GMs. to be paid by the petitioner. The petitioner shall bear the travelling expenses of the Receiver and provide the Receiver with a befitting accommodation at Ranchi in order to enable him to carry out this order.
Since the parties have agreed to the appointment of a new Arbitrator, Justice Ashim Kumar Banerjee (Retired) is appointed as the Arbitrator to adjudicate the disputes between the parties.
The petitioner shall produce a copy of the statement of claim which they had filed before the learned Arbitrator and the respondents shall be entitled to file its defence statement, containing counter-claim, if any. The petitioner will be at liberty to approach the learned Arbitrator for seeking appropriate order under Section 17 of the Act of 1996.
The learned Arbitrator shall be free to decide, his remuneration in the arbitral proceeding and other related matters to conduct the arbitral proceeding.
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The Receiver appointed today shall remain in possession of the hypothecated asset until further direction be passed by the learned Arbitrator.
With the above directions, A.P. No.995 of 2017 stands disposed of.
Urgent certified server copies of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.
The parties, the Arbitrator and the Receiver shall act on a copy of the certified server copy of this order.
(ASHIS KUMAR CHAKRABORTY, J.) sp2.