Delhi District Court
Dj & Asj Incharge (West) vs Mr. Jafruddin S/O Sh. Mehtab on 2 August, 2011
IN THE COURT OF SH. O.P. GUPTA,
DJ & ASJ INCHARGE (WEST), DELHI
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Suit No. 1181/10 Unique ID No.: 02401C0559912010 L & T Finance Limited Having its registered office At L&T House, Ballard Estate, P. O Box278, Mumbai400001.
Regional Office At: 1 DLF Industrial Area, Main Najafgarh Road, Near Moti Nagar Metro Station, Moti Nagar, New Delhi.
Through Sh. Chandresh Bolia ...Petitioner Versus Mr. Jafruddin S/o Sh. Mehtab, H. No. 05, Gharpuri, Tehsil Ferojpur Jhirka, Distt. Gurgaon, Haryana.
...Respondent
(Suit No.1181/10) (1 of 5)
Date of Institution : 07.12.2010
Date of Arguments : 02.08.2011
Date of judgment : 02.08.2011
Petition U/s 9 of Arbitration & Conciliation Act, 1996 EXPARTE JUDGMENT:
1 Petitioner has filed the present petition U/S 9 of the Indian Arbitration & Conciliation Act, 1996 claiming that the respondent had approached the petitioner bank seeking grant of loan for purchase of vehicle/ equipment Tata 2516/48 Super Turbo bearing engine No. 697TC58DRZ121767 and chassis No. 469101DRZ116574. On the request of the respondent an amount of Rs.11,40,000/ was sanctioned as loan vide loancum hypothecation agreement No. OCVF/TLA/42098 dated 30.05.2008. The respondent agreed to repay the loan amount with interest in 47 monthly installments i.e. first installment of Rs.31,698/ and remaining 46 installments of Rs.31,677/ each.
Necessary documents in that regard were claimed to have been executed by the respondent. As per case of the petitioner, the petitioner had duly paid the financed amount to the respondent and vehicle was under exclusive hypothecation of the petitioner.
(Suit No.1181/10) (2 of 5) The respondent started defaulting in repayment for which a demandcumtermination notice dated 12.11.2010 was sent to the respondent recalling the loan facility. It was further claimed that there existed an arbitration clause in the agreement entered into between the parties and the dispute was to be settled by arbitration. The petitioner had prayed that Sh. Aditya Taluja, authorized representative of the petitioner bank may be appointed as Receiver to take into custody the vehicle in question.
2. Vide order dated 07.12.2010 passed by Ld. Predecessor of this Court, Sh. Aditya Taluja, authorized representative of the petitioner bank was appointed as interim receiver to take possession of the vehicle in question. 3 Notice sent to the respondent through registered AD received back with the report of refusal. As none appeared on behalf of respondent despite repeated calls, he was proceeded exparte.
4. I have heard ld. counsel for the petitioner and carefully gone through the record.
5. Ld. counsel for the petitioner submitted that vehicle has not been repossessed till date. However, proceedings for (Suit No.1181/10) (3 of 5) Arbitration have already been initiated. He requested that order of interim receiver may be made effective till conclusion of proceedings for Arbitration. The request appears to be reasonable and is allowed.
6. Perusal of record reveals that as per Arbitration Clause of the Loan Cum Hypothecation Agreement entered into between the parties, all disputes, differences or claims arising out of the agreement shall be settled by arbitration in accordance with provisions of Arbitration & Conciliation Act, 1996. As per provisions of Section 9 of the Arbitration & Conciliation Act, a party can approach the court either before or during the arbitration proceedings or at any time after making of the award for interim injunction or appointment of a Receiver.
7. Accordingly, the petition is allowed and order dated 07.12.2010 passed earlier is made absolute. Sh. Aditya Taluja, authorized representative of the petitioner bank is hereby appointed as receiver to take possession of the commercial vehicle/ equipment Tata 2516/48 Super Turbo bearing engine No. 697TC58DRZ121767 and chassis No. 469101DRZ116574 in accordance with law from the possession of the respondent. Before taking possession of the vehicle, the receiver shall be (Suit No.1181/10) (4 of 5) duty bound to inform the local police station from within whose jurisdiction the vehicle is to be repossessed and the SHO of the said Police Station would be required to provide police assistance to the Receiver if so required. At the time of taking possession of the vehicle, the receiver shall issue receipt in this regard to the respondent or any other person from whose possession the vehicle is being repossessed and shall mention therein the condition of the vehicle. After repossessing the vehicle in question, the receiver shall get it photographed and keep it in the same condition in which it had been repossessed. As arbitration proceedings have already been initiated, the receiver shall be duty bound to maintain the vehicle in same condition till appropriate order in that regard is passed by Ld. Arbitrator. Petition stands disposed of accordingly. File be consigned to Record Room.
Announced in open court
02.08.2011 (O.P. GUPTA)
DJ & ASJ Incharge (West)/Delhi
(Suit No.1181/10) (5 of 5)