Calcutta High Court
Srei Equipment Finance Pvt. Ltd vs Shiv Construction & Ors on 12 July, 2013
Author: Sanjib Banerjee
Bench: Sanjib Banerjee
AP No.577 of 2013
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
ORIGINAL SIDE
SREI EQUIPMENT FINANCE PVT. LTD.
Versus
SHIV CONSTRUCTION & ORS.
BEFORE:
The Hon'ble JUSTICE SANJIB BANERJEE
Date : 12th July, 2013.
Appearance:
Mr. S. Banerjee, Adv.
Mr. Arif Ali, Adv.
The Court : Some payments have been made by the respondents to
the petitioner during the pendency of this petition under Section 9 of the Arbitration and Conciliation Act, 1996.
The petitioner says that a sum of Rs.8,89,000/- is due from the respondents to the finance company on account of the balance defaulted instalments. The monthly instalment payable in terms of the agreement is Rs.2,31,200/-.
2
In view of the payments made by the respondents during the pendency of this petition, the petitioner says that no further effect be given to the letter of termination of the agreement if the respondents agree to pay the monthly instalments from the month of July, 2013 in accordance with the agreement and the balance defaulted amount of Rs.8.89 lakh in four equal or nearly equal instalments along with the payments to be tendered for the months of August to November, 2013. The petitioner also says that a lumpsum amount of interest of Rs.50,000/- should be paid by the respondents to the petitioner along with the monthly instalment that falls due in December, 2013 for the petitioner to have no further claim on account of the instalments that the respondents failed to pay.
AP No.577 of 2013, which is a petition under Section 9 of the Arbitration and Conciliation Act, 1996, is disposed of by permitting the respondents to retain possession of the assets covered by the agreement on condition that they pay the monthly instalments due under the agreement in accordance with the terms of the agreement and pay the outstanding defaulted amount of Rs.8.89 lakh in four equal or nearly equal instalments along with the instalment payments for the months of August to November, 2013 and further upon the respondents paying a lumpsum amount of Rs.50,000/- along with the monthly instalment of December, 2013 on account of interest for the defaulted amount. If the monthly instalments are paid in accordance with the agreement and the defaulted amount and interest are paid as permitted, there will only be an order of injunction restraining the respondents from dealing with or disposing of or alienating or creating any third party rights in respect of the assets in 3 question without the previous leave of the petitioner. In the event there is any delay or default in payment of any monthly instalment in terms of the agreement or any instalment on account of the defaulted amount or the interest thereon, the finance company will be at liberty to apply afresh and seek the immediate appointment of a Receiver to take possession of the assets.
There will be no order as to costs.
Urgent certified photocopies of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.
(SANJIB BANERJEE, J.) bp.
A.R(C.R)