Allowed

L and T Finance Ltd. v. Jagdish B, Bangare and 2 Ors.

Bombay HC13 Jun 2011ARBP/388/2011

Case brief

AI extract

What is this about?

This court granted relief under Section 9 of the Arbitration Act by appointing the Court Receiver to take possession of hypothecated assets, restraining respondents from transferring them, and directing disclosure of asset locations pending arbitration.

What did the court decide?

Appointment of Court Receiver to take possession of hypothecated assets; restraint on respondents from dealing with assets; direction to disclose asset locations within two weeks.

L and T Finance Ltd. Vs Jagdish B, Bangare and 2 Ors. — Arbitration | Bombay HC (2011)

16.arbp.388.2011

skt

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

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ARBITRATION PETITION NO.388 OF 2011

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L & T Finance Limited ....Petitioner V/s. Jagdish B. Bangare & Ors. ....Respondents WITH ARBITRATION PETITION NO. 484 OF 2011 WITH ARBITRATION PETITION NO. 485 OF 2011 WITH ABITRATION PETITION NO.496 OF 2011

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L & T Finance Limited ....Petitioner V/s. M.K.S. Engineering Co. Pvt. Ltd. & Anr. ....Respondents WITH ARBITRATION PETITION NO.486 OF 2011 L & T Finance Limited ....Petitioner V/s. Saud Ahmed Y. Chaudhary & Anr. ....Respondents WITH ARBITRATION PETITION NO. 487 OF 2011 L & T Finance Limited ....Petitioner V/s. Sherkhan A. Pathan & Anr. ....Respondents ..........

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Ms.Shakuntala Joshi i/b S.I. Joshi & Co. for the Petitioner.

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None for the Respondents.

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16.arbp.388.2011

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CORAM : S.J. VAZIFDAR, J.

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DATE : 13TH JUNE 2011.

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P.C.

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

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2 The facts in the above matters are similar. According to the Petitioners, the Respondents are bound and liable to pay the sums of money under the loan/hypothecation agreements entered into between the Petitioner and the Respondent Nos.1 and 2 in Arbitration Petition No.388 and with Respondent No.1 in the other Petitions. The other Respondents in the Petitions are the guarantors. According to the Petitioners, the amounts under the said agreements have not been repaid. The Petitioners 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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3 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 equipment/vehicle/assets referred to in the respective agreements and prayer clause (a) of each of the

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16.arbp.388.2011

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petitions, with all powers under Order XL Rule 1 of the Code of Civil Procedure, 1908.

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(ii) In the event of the Petitioner itself indicating the location of the said vehicles/equipments, the Court Receiver shall take possession thereof, without notice of the Respondents.

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

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(iv) Upon taking possession of the said equipments/vehicles/assets, the Court Receiver shall, in the first instance, appoint the respective Respondents 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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(v) In the event of any Respondent refusing to accept the agency of the Court Receiver, the Court Receiver shall file a report for seeking directions including for appointing an agent in respect thereof or for the sale of the said hypothecated equipments/vehicles/assets.

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

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16.arbp.388.2011

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(vii) Till the Court Receiver takes possession of the equipments/vehicles/assets, the Respondents, either by 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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(viii) 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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(ix) The costs of the petitions shall be the costs in the arbitration proceedings.

L and T Finance Ltd. v. Jagdish B, Bangare and 2 Ors.

Case brief

What is this about?

What did the court decide?

L and T Finance Ltd. v. Jagdish B, Bangare and 2 Ors.

Case brief

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What the court decided

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Coram

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