Calcutta High Court
Citicorp Finance [I] Ltd vs Bhagwandas Auto Finance Ltd. & Anr on 14 July, 2008
Author: Patherya
Bench: Patherya
AP No. 351 of 2008
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
ORIGINAL SIDE
CITICORP FINANCE [I] LTD.
Versus
BHAGWANDAS AUTO FINANCE LTD. & ANR.
For Petitioner : MR. A. MITRA, MR. J. CHOWDHURY, ADVOCATES.
BEFORE:
The Hon'ble JUSTICE PATHERYA
Date : 14th 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 30th June,2006 sums
were advanced for purchase of the equipments in question to the respondents.
The said sums were to be repaid in 58 monthly instalments. Except for payment of Rs.16,77,240/- no further sums have been paid by the respondents to the petitioner. By letter dated 18.1.2008 the petitioner has terminated the agreement and called upon the respondents to deliver up possession of the said equipments in question. By letter 9th July, 2008 disputes have been referred to arbitration. In spite of receipt of letter dated 18.1.2008 no step has been taken by the respondents to make payment or hand over possession of the said equipments in question. 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 said equipments in question.
Having considered the facts of the case and in view of the whereabouts of the equipments in question not known to the petitioner, no purpose will be served in passing an order of injunction. Accordingly, as sums are outstanding and in view of the cheques issued being dishonoured on the ground of "exceeding arrangement" the respondents are directed not to realise sums from its customers namely Maruti Udyog Ltd., Palam Gurgaon Road, Gurgaon - 122015 and Jindal Steel & Power Ltd., New Delhi without leaving a sum of Rs. 37.50 lakhs which is due and payable on date by the respondents to the petitioner.
Matter is made returnable on 29.7.2008.
The petitioner is directed to serve a copy of this petition along with the order passed today on the respondents.
The respondents will be at liberty to seek variation and/or modification of the order upon notice to the petitioner.
The letter dated 9th July, 2008 be kept on record.
All parties concerned including Maruti Udyog Ltd., Gurgaon, Jindal Steel & Power Ltd., New Delhi are to act on a signed xerox copy of this order on the usual undertakings.
(PATHERYA, J.) sb.