The applicant, pending disposal of a loan agreement arbitration, obtained an order prohibiting garnishees from paying Rs.9,99,436/- to respondents, directing deposit of the amount with the Court.
Prohibitory order issuing against garnishees restraining payment of Rs.9,99,436/- to respondents pending arbitration and award enforcement.
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1
Application No.5397 of 2016
DR.ANITA SUMANTH, J.
This application has been filed by the applicant to issue a prohibitory order prohibiting the garnishees from paying any amount to the tune of Rs.9,99,436/- to the respondents or to any persons claiming under them and direct the garnishees to deposit the said amount to the credit of this application and consequently restraining and prohibiting the respondents from receiving any amount from the Garnishees until further orders of this Court pending disposal of the arbitral proceeding and enforcement of the award.
2.The liability arises pursuant to the loan availed of by the first respondent in terms of loan agreement No.CDKLKTF1509010004 dated 31.08.2015 for a sum of Rs.80,00,000/-. As of 23.09.2016 , a sum of Rs.9,99,436/- is stated to be outstanding. Proceedings for arbitration are stated to have been initiated and are pending .
3.Notice has been served and name has been printed in the cause list, despite nobody appears on their behalf.
2
DR.ANITA SUMANTH, J.
vga
4.In view of the above circumstances, I am inclined to grant an
order prohibiting the garnisheeS from making payment as prayed for.
5.Accordingly, this application is ordered and the garnishees are
prohibited from making the payment upto a limit of Rs.9,99,436/- to the respondents as prayed for in the application. Needless to say, as and when
an award is passed, the parties shall be at liberty to proceed as per law.
20.06.2017
vga
Note to office: The order may be communicated to the third respondent garnishee through Messenger in order to ensure due compliance.
Application No.5397 of 2016
2 issues framed by the court
Whether to pass a prohibitory order restricting garnishees from paying the outstanding amount to the respondents pending arbitration.
Whether the garnishees should be directed to deposit the outstanding amount pending disposal of the arbitral proceeding and enforcement of the award.
Applicant
Respondents
Garnishees
DR.ANITA SUMANTH
ANITA SUMANTH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
