Allowed

M/s Fullerton India Credit Co., Ltd. (Ficcl) v. Mr.Senthilkumar Ganesan

Madras HC4 Feb 2021A/297/2021

Case brief

AI extract

What is this about?

In an application under Section 9 of the Arbitration and Conciliation Act, 1996, the Madras High Court appointed an authorized signatory as a receiver to seize a hypothecated vehicle belonging to the respondent, who was in default of loan installments, pending initiation of arbitration proceedings.

What did the court decide?

Appointment of Mr. Karthick Chakkaravarthi as Receiver to seize the vehicle; police assistance granted; order effective for four weeks.

M/s Fullerton India Credit Co., Ltd. (Ficcl) Vs… — Company and Corporate | Madras HC (2021)

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A.No.297 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated : 04.02.2020

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CORAM

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THE HONOURABLE Ms. JUSTICE P.T. ASHA

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A.No.297 of 2021

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M/s.Fullerton India Credit Co. Ltd, (FICCL), having its registered office at MEGH Towers, III Floor, Old No.307, New No.165 Poonamallee High Road, Maduravoyal, Chenani – 600 095, rep.by its authorised signatory Mr.Karthick Chakkaravarthi

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Mr.Karthick Chakkaravarthi ... applicant
Vs.
Mr. Senthilkumar Ganesan ... respondent

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Prayer : Judges summons filed under Order XIV Rule 8 of O.S. Rules R/w Section 9 (ii) (a) (d) & (e) of the Arbitration and Conciliation Act, 1996 to appoint Mr.Karthick Chakkaravarthi, Authorised Signatory and State Collection Manager, Chennai, as the receiver to seize and deliver the vehicle ALTE812 Bus, bearing Engine No.KHEZ403355 and Chassis No.MB1PREHD3KEHD0264 and Registration No.NL-01-B-1475 available at the respondent's premises or wherever found and permit the received to obtain police aid and to break open the premises.

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https://www.mhc.tn.gov.in/judis/

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A.No.297 of 2021

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For Applicant : Mr.V.Balasubramani

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ORDER

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This application is filed for appointing a Receiver to seize the vehicle as an interim measure.

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The applicant would submit that under Loan-cum-hypothecation Agreement dated 25.02.2019, the respondent had availed a sum of Rs.43,60,000/- as loan in respect of the Vehicle. The respondent had committed default in repayment of the dues and it is the contention of the applicant that unless a Receiver is appointed to take charge of the vehicle, there is every likelihood of the respondent disposing of the Vehicle, and in that event, the applicant would be left with no recourse to recover the outstanding. The Vehicle is now hypothecated in favour of the applicant.

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3.Though service has been effected on the respondent he has neither

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appeared in person nor through pleader. Therefore, this Court is proceeding to pass orders in his absence.

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https://www.mhc.tn.gov.in/judis/

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A.No.297 of 2021

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4.A perusal of the papers would indicate that the respondent has

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been in default right from the beginning. Except for eight installments, no other installments have been paid todate and a sum of Rs.36,91,400/remains due. The applicant has further stated that they had attempted to repossess the assets but invain and therefore, they have invoked Section 9

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of the arbitral proceedings for necessary orders.

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Taking into consideration the above, this Court is of the view that

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the applicant has made out a prima facie case and the balance of convenience is also in their favour. Accordingly, Mr.Karthick Chakkaravarthi, Authorised Signatory and State Collection Manager, Chennai, is appointed as Receiver to seize the vehicle covered under the contract. This order shall operate for a period of four (4) weeks from the

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date of receipt of a copy of this order.

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The Receiver shall take possession of the Vehicle from the

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respondent or their agents or any person claiming under him or in whose

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possession the Vehicle is.

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https://www.mhc.tn.gov.in/judis/

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A.No.297 of 2021

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The Receiver shall also be provided Police assistance if requested

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by him, by the Station House Officer of the jurisdictional Police Station in which the vehicle is found.

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It is made clear that the order of appointing the Receiver shall be served on the respondent by the applicant before the Receiver takes any action on the basis of this order. The vehicle shall not be sold without obtaining orders of this Court till the disposal of the Arbitral proceedings. 9.The applicant shall take steps to initiate arbitration proceeding within a period of 90 days from the date of this order.

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The Application is ordered accordingly. No costs.

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04/02/2021 Internet : Yes/No Index :Yes/No Speaking / Non-Speaking mps

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https://www.mhc.tn.gov.in/judis/

A.No.297 of 2021

P.T. ASHA. J,

mps

A.No.297 of 2021
04.02.2021

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https://www.mhc.tn.gov.in/judis/

M/s Fullerton India Credit Co., Ltd. (Ficcl) v. Mr.Senthilkumar Ganesan

Case brief

What is this about?

What did the court decide?

M/s Fullerton India Credit Co., Ltd. (Ficcl) v. Mr.Senthilkumar Ganesan

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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