Allowed

M/S.Cholamandalam Investment and Finance Co. Ltd. v. M/S.Hira Lal

Madras HC25 Nov 2019A/7015/2019

Case brief

AI extract

What is this about?

The court appointed a receiver to seize a vehicle in the custody of the respondent pending arbitration proceedings. The applicant, a finance company, filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 to recover the vehicle loaned to the respondent.

What did the court decide?

Appointment of Mr. Pawan Nigam as receiver to seize the vehicle pending arbitration.

M/S.Cholamandalam Investment and Finance Co. Ltd. Vs M/S.Hira Lal — Arbitration | Madras HC (2019)

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Application No.7015 of 2019

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Application No.7015 of 2019

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PUSHPA SATHYANARAYANA, J.

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This application has been filed by the applicant under Section 9 of the Arbitration and Conciliation Act, 1996, to appoint Mr.Pawan Nigam, ABM, employee of the applicant company, as a Receiver to seize and take possession of the vehicle, which is more fully described in the schedule to the Judges Summons which is lying in the custody of respondent or his men, agents, servants

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from his premises or wherever found with police aid and break open of premises

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if necessary.

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The respondent availed of a vehicle loan from the Applicant-company

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and executed a loan agreement No.XVFPJAH00002308852, dated 28.02.2018, for

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a sum of Rs.8,00,000/- to be paid in 47 installments and the first installment commenced from 28.02.2018 and the re-payments were to run till 28.12.2021. It

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is stated that as on 13.09.2019, a sum of Rs.6,58,684.97 is payable by the respondent in all. In terms of the loan agreement executed by the respondent, the applicant/Finance company is entitled to re-possess the vehicle in the event of default committed by the respondent. It is also submitted that the continued

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use of the vehicle by the respondent would depreciate its value.

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http://www.judis.nic.in

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Application No.7015 of 2019

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Notices sent to the respondent has been served and affidavit of service is also filed to that effect enclosing the Track Consignment Report. Though the name of the respondent is also printed in the cause list, there is no representation for him either in person or through counsel.

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Upon considering the facts and circumstances of the case, this Court is satisfied that the applicant has made out a prima facie case in its favour and accordingly, Mr.Pawan Nigam, ABM, employee of the applicant company is appointed as Receiver to take custody of the vehicle. The receiver will be entitled to take possession of the vehicle from the respondent or its agent or any one in possession thereof. If necessary, the Receiver shall get police assistance and the Station House Officer of the concerned Police Station, within whose jurisdiction the vehicle is found, will render requisite assistance for this purpose.

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The agreement entered into between the applicant and the respondent

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provides for arbitration in the event of disputes and differences between the parties. It is submitted by the learned counsel for the applicant that proceedings for arbitration have been initiated and are pending. The Receiver shall preserve the vehicle without alienating or encumbering thereof till the arbitration proceedings are concluded. However, in case the respondent make payment of the outstanding installments, the Receiver shall release the vehicle to the respondent. The receiver shall seize the vehicle within a period of eight weeks

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http://www.judis.nic.in from the date of receipt of a copy of this order.

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Application No.7015 of 2019

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6. Accordingly, this Application is closed.

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25.11.2019

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vsm

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The counsel for the applicant is permitted to receive the certified copy of the order of the Receiver and communicate the same to the Receiver.

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http://www.judis.nic.in

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Application No.7015 of 2019

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PUSHPA SATHYANARAYANA, J.

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vsm

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Application No.7015 of 2019

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25.11.2019

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http://www.judis.nic.in

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M/S.Cholamandalam Investment and Finance Co. Ltd. v. M/S.Hira Lal

Case brief

What is this about?

What did the court decide?

M/S.Cholamandalam Investment and Finance Co. Ltd. v. M/S.Hira Lal

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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