Disposed

L and T Finance Ltd. v. Laxman Sopan Saste and Sopan P. Saste

Bombay HC1 Mar 2013ARBP/194/2013

Case brief

AI extract

What is this about?

In an arbitration petition regarding a loan default, the Bombay High Court appointed a Court Receiver for the alleged hypothecated vehicle, granted an interim injunction against alienation, and allowed the receiver to offer respondents agency rights.

What did the court decide?

Appointment of Court Receiver; injunction restraining alienation; notice to respondents on agency option.

L and T Finance Ltd. Vs Laxman Sopan Saste and Sopan… — Execution and Attachment | Bombay HC (2013)

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ARBPL-80/13

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY .

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ORDINARY ORIGINAL CIVIL JURISDICTION

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ARBITRATION PETITION (L) NO.80 OF 2013.

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L.& T. FINANCE LTD.

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... Petitioner.

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V/s.

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MR LAXMAN SOPAN SASTE AND ANR. ... Respondents.

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Ms Shakuntala Joshi i/b M/s S.I.Joshi & Co., for Petitioner. None for Respondents.

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CORAM : R.D.DHANUKA J. DATED : MARCH 1, 2013.

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P.C.

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This Petition is filed by the Petitioner under Section 9 of the

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Arbitration and Conciliation Act, 1996 seeking reliefs as prayed against the Respondents.

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The Petition has been served on the respondents. The learned Counsel appearing for the Petitioner tenders Affidavit of service proving service dated 29^th January 2013. The same is taken on record. It is stated in the Affidavit that Respondents have accepted the service. Today the Petition is

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taken up for final hearing however, none appears for the Respondents.

Asmita

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.. 2 .. ARBPL-80/13

The Petitioner had provided a loan of Rs.8,90,000/- to the first Respondent under a Loan-cum-Hypothecation Agreement entered into on 15^th December 2010. The loan was repayable with interest @ 11.13 per annum in 36 monthly installments of Rs.29,150/-. The second Respondent has guaranteed the due repayment of the loan. Clause 12 of the Agreement provides for the events of default; Clause 13 provides consequences of default and Clause 14 provides for the rights of the Petitioner on default including repossession of the asset. Clause 17 provides for arbitration. There has been a default on the part of the Respondents. The Respondents were liable to pay to the Petitioner a sum of Rs.-6,77,420/-. The Petitioner has invoked the provision of arbitration.

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In the present Petition, the Petitioner has sought appointment of the Court Receiver as Receiver of the hypothecated TATA LPT 1109/42, more particularly described in Exhibit-F to the Petition. In absence of any defence or contest by the Respondents, the averments contained in Petition would have to be accepted. There has been a default in payment of the outstanding dues. It would, therefore, be necessary to safeguard the interest of the Petitioner by appointing the Court Receiver as Receiver of the hypothecated TATA LPT 1109/42. The appointment of the Receiver is necessary in order to ensure that

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the TATA LPT 1109/42 is not wasted or alienated, thereby defeating the rights of

Asmita

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ARBPL-80/13

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the Petitioner. Section 9 empowers the Court to pass an interim measure of protection. Hence the following order.

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i) Pending the hearing and final disposal of the arbitration proceedings, the Court Receiver is appointed as Receiver in respect of the TATA LPT 1109/42, more particularly described in Exhibit-F to the Petition, with direction to take forcible possession of the said TATA LPT 1109/42 with police assistance, if required, and without any prior notice to the Respondents.

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ii) The Court Receiver shall within a period of two weeks after taking possession, give an option to the Respondents in writing to act as agents of Receiver in respect of the said TATA LPT 1109/42. The Respondents shall be given two weeks time by the Court Receiver from the date of receipt of the Court Receiver's communication/letter to exercise such option. In the event of the respondent/s being desirous of acting as agents of the Receiver, they shall be appointed as agents of the Receiver, subject to security and royalty. The Receiver shall determine the quantum of security and royalty having regard to the terms and conditions contained in the Loan-cumHypothecation Agreement (Exhibit-A to the Petition).

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iii) In the event that the Respondents do not communicate their willingness to the Receiver to act as agents within a period of two weeks from the date of receipt of the communication from the Court Receiver, it would be open to the Petitioner to apply to the Court for further orders including sale of the TATA LPT 1109/42 by private

Asmita

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ARBPL-80/13

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treaty.

iv) Until the Receiver takes possession, there shall be an interim injunction restraining the Respondents from alienating, encumbering, parting with possession or creating any third party right in respect of the TATA LPT 1109/42 described in Exhibit-F to the Petition.

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The Arbitration Petition is accordingly disposed of.

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( R.D.DHANUKA, J.)

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Asmita

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L and T Finance Ltd. v. Laxman Sopan Saste and Sopan P. Saste

Case brief

What is this about?

What did the court decide?

L and T Finance Ltd. v. Laxman Sopan Saste and Sopan P. Saste

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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