Allowed

L and T Finance Ltd. v. Nandkumar B. Patil and 2 Ors.

Bombay HC16 Nov 2010ARBP/844/2010

Case brief

AI extract

What is this about?

The Court granted an interim appointment of a Court Receiver to take possession of hypothecated assets. The receiver is empowered to appoint agents or third parties to manage the assets. Respondents are restrained from transferring assets and directed to disclose their locations.

What did the court decide?

Appointment of Court Receiver with powers under CPC Order XL Rule 1 to take possession and appoint agents; restraint on transfer of assets; direction to disclose locations.

L and T Finance Ltd. Vs Nandkumar B. Patil and 2 Ors. — Arbitration | Bombay HC (2010)

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arbp832-10g

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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ARBITRATION PETITION NO.832 OF 2010

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L & T Finance Ltd. ....Petitioner

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V/s. Sachindanand Shukla & Anr. ....Respondents

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WITH ARBITRATION PETITION NO.844 OF 2010

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L & T Finance Ltd. ....Petitioner V/s.

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Nandkumar B. Patil & Anr. ....Respondents

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WITH

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ARBITRATION PETITION NO.898 OF 2010

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L & T Finance Ltd. ....Petitioner

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V/s.

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Shivaji L. Barge & Anr. ....Respondents

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Ms.S.I. Joshi i/b M/s.S.I. Joshi & Co. for the Petitioners. None for the Respondents.

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CORAM : S.J. VAZIFDAR, J. DATE : 16TH NOVEMBER, 2010.

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P.C. :-

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These are petitions under section 9 of the Arbitration & Conciliation Act, 1996.

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The facts in the above matters are similar. According to the Petitioners, the Respondents are bound and liable to pay the various sums of money under the loan/hypothecation agreements entered into between the Petitioner and Respondent No.1. Respondent No.2 in the petitions is

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arbp832-10g

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the guarantor. According to the Petitioner, the amounts under the said agreements have not been repaid. The Petitioner’s dues are secured by the hypothecation of the respective vehicles/equipments. As a result thereof, the matters are to be decided in arbitration.

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In the circumstances, the above petitions are disposed of by the following order :-

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(i) Pending the hearing and final disposal of the arbitration proceedings and for a period of twelve weeks thereafter the Court Receiver, High Court, Bombay is appointed as a Receiver of the hypothecated equipments/vehicles/ assets referred to in the respective agreements and prayer clause (a-1) as the case may be of each of the petitions, with all powers under Order XL Rule 1 of the Code of Civil Procedure, 1908.

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(ii) Liberty to the Court Receiver to apply in the event of any difficulty in taking possession of the said equipments/vehicles/assets.

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(iii) Upon taking possession of the said equipments/ vehicles/assets, the Court Receiver shall, in the first instance, appoint the respective Respondent as an agent in respect of the said equipments/vehicles/assets on usual terms and conditions including as to security and royalty.

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(iv) In the event of any Respondent refusing to accept the agency of the Court Receiver, the Court Receiver shall appoint any third party as an agent in respect thereof on the

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arbp832-10g

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same terms and conditions. In that event, the Respondents

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shall be entitled to bid for the agency.

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(v) Liberty to apply for further reliefs, including in respect of those reliefs which have not been granted by this Court, after the Court Receiver takes possession and in the event of the security being inadequate to meet the

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alleged claims of the Petitioner. All rights and contentions in that regard are kept open.

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(vi) Till the Court Receiver takes possession of the equipments/vehicles/assets, the Respondents either through themselves or through their servants or agents are restrained in any manner from transferring, disposing of, alienating encumbering or creating any third party rights in respect of the said hypothecated equipments/vehicles/assets.

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(vii) Each of the Respondents is ordered and directed to disclose the location of the equipment/vehicles/assets within two weeks from the date of service of the copy of this order.

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(viii) The costs of the petitions shall be the costs in the arbitration proceedings.

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The undertaking to file the affidavit of service within two weeks from today, if not already filed, is accepted.

L and T Finance Ltd. v. Nandkumar B. Patil and 2 Ors.

Case brief

What is this about?

What did the court decide?

L and T Finance Ltd. v. Nandkumar B. Patil and 2 Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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