This order appointed the Court Receiver to take possession of hypothecated vehicles owned by the respondents to secure the petitioner's dues pending arbitration proceedings.
Appointment of Court Receiver to take possession of hypothecated vehicles; restraint on transfer of assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
ARBPL677.11
1
srp IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION (LODGING) NO.677 OF 2011
L & T Finance Limited ....Petitioner
Vs.
M/s.Sarth Engineering & Construction & Ors. ....Respondents
ALONGWITH
ARBITRATION PETITION (LODG) NO.678/2011, ARBITRATION PETITION (LODG) NO 679/2011 & ARBITRATION PETITION (LODG) NO.715 OF 2011
Ms. Shakuntala Joshi i/b S.I. Joshi & Co; for the Petitioners.
None for the Respondents.
CORAM : S.J. VAZIFDAR, J.
MONDAY , 1ST AUGUST, 2011.
P.C. :-
2 ARBPL677.11
(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.
(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.
(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.
3 ARBPL677.11
(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.
(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.
(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.
(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
4 ARBPL677.11
manner from transferring, disposing of, alienating, encumbering or creating any third party rights in respect of the said hypothecated vehicles.
(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.
(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.
1 issue framed by the court
Whether to appoint a Court Receiver to take possession of hypothecated vehicles secured under loan agreements pending arbitration proceedings.
L & T Finance Limited
M/s. Sarth Engineering & Construction
S.J. VAZIFDAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
