Tata Motors Finance Limited vs Rajaram Gurjar — Arbitration | Bombay HC (2025)

Tata Motors Finance Limited vs Rajaram Gurjar — Arbitration | Bombay HC (2025)

What the court decided

AI extract

Outcome

Ad-interim reliefs granted as moulded in the order (not a final disposal): (A) injunction restraining the Respondents from alienating, transferring, encumbering or creating third-party rights over the hypothecated commercial vehicles at Exhibit C; (B) Court Receiver appointed to take possession of the Exhibit C vehicles, with the Respondents to disclose the vehicles' current and exact location on oath and hand over peaceful possession to the Court Receiver, the Petitioner acting as the Receiver's agent; (C) Court Receiver and Petitioner authorised to obtain police assistance, on payment of charges, to take physical possession per the repossession clause. Respondents may appear on the next date to seek variation/alteration/vacation of the ad-interim relief; Petition stood over to April 7, 2025; any connected Section 11 Application to be tagged and listed along with the Petition.

¶judgment-para-6

Issue for consideration

Whether urgent interlocutory (ad-interim) protective reliefs should be granted in respect of the hypothecated commercial vehicles (the subject property of the arbitration), given the Respondents' default, their non-appearance despite notice, and the risk of the vehicles being lost or dissipated, pending consideration of further interim relief by the Arbitral Tribunal.

¶judgment-para-3

Court's answer

A case has been made out for grant of the interim reliefs moulded below, which apply pending consideration of further interim relief by the Arbitral Tribunal to be constituted in the matter.

¶judgment-para-4

Ratio / Principle

The Respondents are injuncted, whether personally or through others claiming through or under them, from selling, alienating, transferring, parting with possession of, encumbering, dealing with, disposing of, or creating any third-party rights or interest in respect of the hypothecated commercial vehicles (more particularly described at Exhibit C to the Petition).

¶judgment-para-4 (relief A)

Key takeaways

The Court Receiver of the Court is appointed to take possession of the vehicles listed in Exhibit C.ratio¶judgment-para-4 (relief B)
The Respondents are directed to disclose the current and exact location of the hypothecated Exhibit C vehicles on oath, and to hand over peaceful possession of the Hypothecated Vehicles to the Court Receiver, with the Petitioner acting as the agent of the Court Receiver.ratio¶judgment-para-4 (relief B)
The Court Receiver and the Petitioner are authorised to seek assistance of the police from the appropriate concerned police station, upon payment of necessary charges, for taking physical possession of the hypothecated vehicles described in Exhibit C as per the repossession clause of the Loan Agreements.

Detailed headnote1 paragraphs

Bombay High Court (Commercial Division), Commercial Arbitration Petition No. 301 of 2024, order dated March 10, 2025 (Somasekhar Sundaresan, J.) - Tata Motors Finance Ltd. v. Rajaram Gurjar and Anr. Section 9, Arbitration and Conciliation Act, 1996 petition for interlocutory protective reliefs concerning disputes under Loan cum Hypothecation cum Guarantee Agreements dated November 30, 2019 financing commercial vehicles (arbitration clause: Clause 21; express re-possession clause: Clause 12; financed vehicles listed at Exhibit C). The Respondents defaulted in servicing the loan; loan recall-cum-invocation notices issued June 20, 2024 and July 5, 2024; claimed dues Rs.2,06,04,711.72; the financed vehicles remained unsighted and, per counsel, at risk of loss or dissipation rendering the arbitration infructuous; Respondents absent despite service (affidavit of service dated November 29, 2024). Held: a case was made out for interim reliefs, to operate pending consideration of further interim relief by the Arbitral Tribunal to be constituted - (A) Respondents injuncted from selling, alienating, transferring, parting with possession of, encumbering, disposing of or creating third-party rights in the Exhibit C vehicles; (B) Court Receiver appointed to take possession; Respondents to disclose the vehicles' current and exact location on oath and hand over peaceful possession to the Court Receiver, the Petitioner acting as the Receiver's agent; (C) Court Receiver and Petitioner authorised to seek police assistance, on payment of charges, to take physical possession per the repossession clause. Respondents at liberty to appear on the next date to seek variation or vacation; Petition stood over to April 7, 2025; any connected Section 11 Application to be tagged and listed therewith.