Calcutta High Court
Srei Equipment Finance Private Ltd ( ... vs Saagrr Infra Ltd & Anr on 22 July, 2009
Author: Indira Banerjee
Bench: Indira Banerjee
AP No. 344 of 2009
IN THE HIGH COURT AT CALCUTTA
ORIGINAL SIDE
SREI EQUIPMENT FINANCE PRIVATE LTD ( SEFPL).
Versus
SAAGRR INFRA LTD & ANR
Appearance:
Mr.Satarup Banerjee, Advocate.
BEFORE:
The Hon'ble JUSTICE INDIRA BANERJEE
Date : 22nd July, 2009.
The Court: The petitioner financed
Rs.44,65,050/- to the respondent No.1 for purchase of the
asset, particulars whereof have been given in the petition. An agreement in writing dated 02.07.2008 was duly executed in terms whereof repayments were to be made in 35 monthly instalments.
In terms of the said agreement, the asset is secured to the petitioner and the petitioner becomes entitled to take possession of the asset, sell the same and realize the sale proceeds thereof towards protanto satisfaction of its dues, upon default in payment of instalments. The said agreement, inter alia, contains an arbitration clause.
The respondent No.1 has paid 2(two) instalments and part of 3rd instalment which fell due on 22.10.2008, and thereafter committed defaults. A sum of Rs.11,00,400/- 2 is outstanding on account of arrears of instalments up to 22.04.2009 apart from overdue and/or delayed payment charges.
The respondent No.1 having defaulted in payment of instalments, and thereby breached the terms and conditions of the said agreement, the petitioner has terminated the said agreement, recalled the advance and demanded immediate payment of future instalments.
Prima facie, a huge amount is outstanding from the respondent No.1 to the petitioner. Apparently, the petitioner has, in terms of the said agreement become entitled to take physical possession of the asset in question, sell the same and realize the sale proceeds thereof towards protanto satisfaction of its dues. The value of the asset is also depreciating fast. The petitioner has made out a good prima facie case for interim relief and it is just, proper and convenient that interim relief be granted to the petitioner.
It is pleaded that the agreement was executed at the Kolkata office of the petitioner within the jurisdiction of this Court. Payments were to be made to the petitioner at its said Kolkata office within the jurisdiction of this Court. The outstanding instalments were payable within the jurisdiction of this Court. In 3 other words, defaults had taken place within the jurisdiction of this Court. As such a substantial part of the cause of action has arisen within the jurisdiction of this Court. This Court, therefore, has jurisdiction to entertain and decide this application. Leave under Clause 12 of the Letters Patent is, however, not necessary since an application under Section 9 of the Arbitration and Conciliation Act, 1996 is not a suit.
There will be an order in terms of prayer (b) of the petition.
Mr. Ashim Kumar Ganguly, Advocate, Bar Association, is appointed Receiver over the asset in question. The learned Receiver shall take physical possession of the asset in question, make an inventory
thereof and keep the same in his custody in a secure place provided by the petitioner. The learned Receiver shall be entitled to take police assistance for implementation of this order, should police assistance be necessary. The respondent No.1 shall, if called upon by the learned Receiver inform the learned Receiver of the exact location of the asset and make over possession thereof to the learned Receiver at the time and place fixed by the learned Receiver. After the location of the asset is disclosed to 4 the learned Receiver, the asset shall not be removed without intimation to the learned Receiver.
The learned Receiver shall be entitled to initial remuneration of 600 GMs. to be paid by the petitioner at the first instance and added to its claim against the respondents. The petitioner shall make necessary arrangements for travel and accommodation of the learned Receiver in a manner commensurate with his status as a practising Advocate of this Court.
The matter is made returnable six weeks hence. Receiver and all parties are to act on a xerox signed copy of this order on the usual undertakings.
( INDIRA BANERJEE, J.) cs.