Disposed

L and T Finance Dltd. v. Vasant K. Valte and Anr.

Bombay HC16 Aug 2011ARBP/644/2011

Case brief

AI extract

What is this about?

The High Court disposed of multiple arbitration petitions under Section 9 of the Arbitration Act regarding unpaid loan amounts secured by vehicles. The court appointed a Court Receiver to take possession of the hypothecated vehicles, granting powers to appoint agents or force possession if necessary. Respondents were restrained from transferring the vehicles and directed to disclose their location

What did the court decide?

Appointment of Court Receiver as Receiver of hypothecated vehicles with powers to appoint agents or take forcible possession; restraint on transfer of vehicles; direction to disclose vehicle locations

L and T Finance Dltd. Vs Vasant K. Valte and Anr. — Arbitration | Bombay HC (2011)

arbp641-11g

vai

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

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ARBITRATION PETITION NO.641 OF 2011

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L & T Finance Limited ....Petitioner V/s. Gulshan Kumar Sharma & Anr. ...Respondents

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WITH

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ARBITRATION PETITION NO.642 OF 2011

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L & T Finance Limited ....Petitioner V/s. Birappa Appaso Mane & Anr. ...Respondents

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WITH

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ARBITRATION PETITION NO.643 OF 2011

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L & T Finance Limited ....Petitioner V/s. Gulshan Kumar Sharma & Anr. ...Respondents

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WITH

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ARBITRATION PETITION NO.644 OF 2011

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L & T Finance Limited ....Petitioner V/s. Vasant Kaluram Valte & Anr. ...Respondents

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WITH

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ARBITRATION PETITION NO.645 OF 2011

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L & T Finance Limited ....Petitioner V/s. M/s.Balram Kumar, Govt. Contractor & Anr. ...Respondents

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WITH ARBITRATION PETITION NO.557 OF 2008

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L & T Finance Limited ....Petitioner

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V/s.

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M/s.Seshaih Nayudu Constructions & Ors.

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WITH ARBITRATION PETITION NO.643 OF 2009

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L & T Finance Limited

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....Petitioner

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V/s.

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Narendra J. Sharma & Anr.

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...Respondents

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

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CORAM : S.J. VAZIFDAR, J. DATE : 16TH AUGUST, 2011.

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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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According to the petitioners, the respondents are bound and liable to pay amounts under the loan/hypothecation agreement entered into between the petitioners and respondent No.1. Respondent Nos.2 to 5 in Arbitration Petition No.557 of 2008 are the partners of respondent No.1 in that petition. Respondent No.2 in the other petition and respondent No.6 in Arbitration Petition No.557 of 2008 are the guarantors. According to the petitioners, the amounts under the said agreement/s have not been repaid. The petitioners dues are secured

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by the hypothecation of the vehicles. As a result thereof, the matter is 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 vehicles referred to in the agreements and prayer clause (a) of the petition, 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, the Court Receiver shall take possession thereof, without notice to the respondents.

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(iii) In the event of the respondents not handing over possession to the Court Receiver, as directed by him, the Court Receiver shall take forcible possession without further reference to this Court. For this purpose, the Court Receiver shall be entitled to take the assistance of the police. The Court Receiver shall also enter into the agency agreement at the earliest.

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(iv) Upon taking possession of the said vehicles, the Court Receiver shall, in the first instance, appoint the Respondents as his agents in respect of the said vehicles on the usual terms and conditions including as to security and royalty but only after the agency agreement

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is executed by the concerned respondents.

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(v) In the event of the Respondents 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 vehicles.

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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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(vii) Till the Court Receiver takes possession of the vehicles, 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 vehicles.

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(viii) The Respondents are ordered and directed to disclose the location of the vehicles within two weeks from the date of service of the copy of this order.

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(ix) The undertaking to file the affidavit of service within two weeks from today, if not already filed, is accepted. It is clarified that the Court Receiver shall take physical possession of the vehicles upon the petitioner identifying the same in the event of the Court Receiver being unable to locate the respondents despite efforts.

L and T Finance Dltd. v. Vasant K. Valte and Anr.

Case brief

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L and T Finance Dltd. v. Vasant K. Valte and Anr.

Case brief

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