Madras High Court
M/S.Cholamandalam Investment And ... vs Ajeet Kumar Netam on 20 January, 2026
Author: N.Anand Venkatesh
Bench: N. Anand Venkatesh
1/8 Arb Appln No. 1 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 20-01-2026
CORAM
THE HONOURABLE MR JUSTICE N. ANAND VENKATESH
ARB APPLN NO. 1 OF 2026
M/s.Cholamandalam Investment and Finance Co Ltd.,
‘Chola Crest’, C 54 and 55, Super B-4,
Thiru Vi Ka Industrial Estate,
Guindy, Chennai 600 032
Rep. By its Authorised Signatory
Applicant(s)
Vs
1. Ajeet Kumar Netam
2.Baijuram Netam
3.Punjab National Bank
Jai Stambh Chouck
Narayanpur
Dist- Narayanpur
Chhattisgarh 494661
Respondent(s)
PRAYER Petition filed under Section 9 of the Arbitrtion and Conciliation Act,
1996, praying to pass an order directing the granishee to debit freeze the bank
account bearing Account No.6695001500013790, IFSC Code
No.PUNB0669500 maintained by the 1st respondent with the garnishee to the
extent of a sum of Rs.24,67,833/- and further to direct the Garnishee to deposit
the sum of Rs.24,67,833/- or any amount lying in the bank account to the credit
of this application.
https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm )
2/8 Arb Appln No. 1 of 2026
For Respondent(s): Mr.D.Pradeep Kumar
For Respondent(s): No Appearance
ORDER
This application has been filed under Section 9 of the Arbitration and Conciliation Act (for the sake of brevity, hereinafter referred to as 'the Act') for a direction to the garnishee viz., the 3rd respondent to debit freeze the bank account bearing Account No.6695001500013790, IFSC Code No.PUNB0669500 maintained by the 1st respondent with the garnishee to the extent of a sum of Rs.24,67,833/- and further to direct the Garnishee to deposit a sum of Rs.24,67,833/- or any amount lying in the bank account to the credit of this application.
2.Heard the learned counsel for the applicant and carefully perused the materials available on record.
3.The respondents have been served with notice and their names have been printed in the cause list and there is no appearance either in person or through counsel.
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4.The case of the applicant is that the respondents 1 and 2 approached the applicant for loan. The 1st respondent is the borrower and the 1st respondent availed loan to the tune of Rs.20,22,082/- vide Loan Agreement dated 28.03.2023.The 2nd respondent is the co-borrower. The respondents had to repay back a total sum of Rs.26,40,000/- in sixty EMIs starting from 28.04.2023 and ending with 28.03.2028.
5.The 1st respondent after paying the initial instalments, became a defaulter and in spite of repeated requests and demands, the amount was not repaid back. The loan was given towards the purchase of vehicle and hence, the vehicle was re-possessed by the applicant and it was sold on 30.08.2024. After giving credit to the sale consideration, the applicant made a demand for the payment of the balance sum of Rs.24,67,833/-. Since the amount was not paid, the applicant initiated arbitration proceedings.
6.In the meantime, the 1st respondent approached the District Consumer Disputes Redressal Commission and filed a complaint against the insurer viz., ICICI Lombard claiming for compensation/damages. The said complaint was partly allowed by an order dated 22.11.2024 and the Insurance Company was directed to pay the damages along with other costs. As against the same, the https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm ) 4/8 Arb Appln No. 1 of 2026 Insurance Company filed an appeal before the State Consumer Dispute Redressal Commission and the said appeal was dismissed.
7.The applicant had filed Arbitration Appln.No.1724 of 2025 seeking for prohibitory orders against the Garnishee. Even though, an interim order was passed in this application on 19.12.2025, the applicant later came to know that the amount had already been disbursed in favour of the 1 st respondent. Accordingly, Arbitration Appln.No.1724 of 2025 became infructuous and the same was closed.
8.The applicant collected details and found that the 1 st respondent is having a bank account with the 3rd respondent. Under such circumstances, the present application came to be filed for directing the 3 rd respondent to debit freeze the bank account maintained by the 1 st respondent to the extent of Rs.24,67,833/- and further direct the 3rd respondent to deposit the amount.
9.When the application came up for admission on 05.01.2026, this Court on considering the materials directed the 3rd respondent to debit freeze the bank account of the 1st respondent and ordered notice to the respondents. In spite of service of the notice to the respondents, the respondents have not chosen to contest this application.
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10.Taking into consideration the facts and circumstances of the case and considering the materials placed before this Court and also taking note of the fact that the 1st and 2nd respondents did not contest this application, the order passed on 05.01.2026 is made absolute and there shall be a direction to the 3 rd respondent to deposit a sum of Rs.24,67,833/- to the credit of Arb.Appln.No.1 of 2026, within a period of two weeks from the date of receipt of copy of this order. This shall be subject to the final result of the arbitration proceedings which are pending and depending on the final result in the arbitration proceedings, the amount that has been deposited can be dealt with. Till then, the amount shall be deposited in a Fixed Deposit carrying interest and it shall be renewed from time to time.
11.In the result, this application stands allowed in the above terms. No Costs.
20-01-2026 (2/2) Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm ) 6/8 Arb Appln No. 1 of 2026 ssr https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm ) 7/8 Arb Appln No. 1 of 2026 To
1.Punjab National Bank Jai Stambh Chouck Narayanpur Dist-
NarayanpurChhattisgarh 494661 https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm ) 8/8 Arb Appln No. 1 of 2026 N.ANAND VENKATESH J.
ssr ARB APPLN NO. 1 OF 2026 20-01-2026 (2/2) https://www.mhc.tn.gov.in/judis ( Uploaded on: 21/01/2026 03:44:31 pm )