Allowed

Citicorp Finance (India) Ltd. v. Mukesh G. Gajbhiye and Anr.

Bombay HC18 Aug 2011ARBP/745/2011

Case brief

AI extract

What is this about?

The court appointed a receiver to take possession of hypothecated vehicles secured against loan defaults. The receiver was granted powers to enter an agency agreement or seek sale directions. Respondents were restrained from transferring the vehicles and directed to disclose their locations.

What did the court decide?

Appointment of Court Receiver; restrain respondents from disposing of vehicles; direct disclosure of vehicle locations.

Citicorp Finance (India) Ltd. Vs Mukesh G. Gajbhiye and… — Company and Corporate | Bombay HC (2011)

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

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ARBITRATION PETITION (LODGING) NO.789 OF 2011

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Citicorp Finance (India) Limited ....Petitioner V/s. Rajesh Shukla & Anr. ...Respondents

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WITH ARBITRATION PETITION (LODGING) NO.791 OF 2011

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Citicorp Finance (India) Limited ....Petitioner V/s. Rameez Shaikh & Anr. ...Respondents

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WITH ARBITRATION PETITION (LODGING) NO.792 OF 2011

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Citicorp Finance (India) Limited ....Petitioner V/s. Mohd. Rafique Ansare & Anr. ...Respondents

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WITH ARBITRATION PETITION (LODGING) NO.817 OF 2011

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Citicorp Finance (India) Limited ....Petitioner V/s. Gurumukh Singh Bal & Anr. ...Respondents

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WITH ARBITRATION PETITION (LODGING) NO.818 OF 2011

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Citicorp Finance (India) Limited ....Petitioner V/s. Mukesh Gajbhiya & 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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CORAM : S.J. VAZIFDAR, J. DATE : 18TH 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. The other respondents are the guarantors. According to the petitioners, the amounts under the said agreement/s have not been repaid. The petitioners dues are secured 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

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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 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

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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.

Citicorp Finance (India) Ltd. v. Mukesh G. Gajbhiye and Anr.

Case brief

What is this about?

What did the court decide?

Citicorp Finance (India) Ltd. v. Mukesh G. Gajbhiye and Anr.

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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