Shrinithi Capital Private Ltd. Vs M Eshwar

Prayer: Arbitration Application is filed under Order XIV Rule 8 of O.S.Rules r/w. Section 9 (ii) (b) and (e) of Arbitration and Conciliation Act, 1996, praying to appoint an Advocate Commissioner with direction to seize the Schedule mentioned Vehicle which is lying under the custody of the Respondents or his men, agent, Servants or anyone claiming under them

¶20

1/6

¶21

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

¶22

Arb Appln No.723 of 2025

¶23

from the premises of 1^st Respondent at No.C202 Raheja Regency, No.147, Santhome High Road, Raja Annamalaipuram, Chennai 600 028 , or at any other place where the scheduled asset is found, with the police aid and by breaking open locks if necessary and to take the same into his custody and sell the same at fair market price.

For Applicants:

Mr.K Sendurpandi

ORDER

As directed by this Court, the applicants have effected Substituted

¶28

Service on the Respondents 1 and 3 by effecting paper publication. The paper publication has been enclosed along with the Affidavit of service. Hence, the Respondents 1 and 3 were set exparte by this Court. The 2^nd Respondent has already been set exparte by this Court.

¶29

2. The respondents are defaulters in repayment of the loan to the applicants. The loan agreement dated 01.04.2024 empowers the applicants to repossess the vehicle from the respondents in case the respondents commit default in repayment of the loan. As on 22.04.2025, a sum of Rs.13,29,985/- is due and payable by the respondents to the applicants, as is seen from the statement of account filed along with this application. As on

¶30

2/6

¶31

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

¶32

Arb Appln No.723 of 2025

¶33

the date of filing of the application, the respondents are in arrears of Rs.6,18,756/- as is seen from the affidavit filed in support of the petition.

¶34

3. The applicants have expressed their difficulty to appoint the Advocate Commissioner on its own. They have also expressed their willingness to go for arbitration in accordance with arbitration clause contained in the loan agreement, dated 01.04.2024. The applicants have already recalled the loan of the respondents. This Court after giving due consideration to the contents of the affidavit filed in support of the application, is of the considered view, a prima facie case has been made out by the applicants for the appointment of an Advocate Commissioner by this Court to repossess the vehicle from the respondents or wherever available. To enable the respondents to take back possession of the vehicle from the Advocate Commissioner, they must be put on terms for getting back the vehicle from the applicants after re-possession. In order to strike a balance, the following order is passed by this Court:

¶35

a)Ms.S.Revathi, Advocate, having office at No.75, Law Building, High Court, Chennai - 600 001 (Mob. No.9962609578) is appointed as the Advocate Commissioner to re-posses the vehicle, morefully described in the

¶36

3/6

¶37

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

¶38

Arb Appln No.723 of 2025

¶39

schedule to the Judges Summons from the respondents from his premises or wherever available;

¶40

b)The Advocate Commissioner, after re-possessing the vehicle, shall handover interim custody of the same to the applicants, who shall keep it in their safe custody;

¶41

c)The Advocate Commissioner, immediately after re-possessing the subject vehicle, shall intimate the respondents either through Registered Post with Acknowledgment Due (RPAD) or by hand delivery through a written communication that the arrears of installments work out to Rs.13,29,985/-;

¶42

d)The respondents, on payment of Rs.13,29,985/- to the applicants within a period of three days from the date when the subject vehicle was repossessed, is entitled for return of the seized vehicle. On receipt of the sum of Rs.13,29,985/- within the stipulated time as stated supra, the applicants shall re-deliver the subject vehicle back to the respondents with proper acknowledgment and the advocate commissioner shall also render proper assistance for the same;

¶43

4/6

¶44

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

¶45

Arb Appln No.723 of 2025

¶46

e)The applicants shall initiate arbitration in accordance with the arbitration agreement contained in the contract within a period of 90 days from today. In case, the applicants fail to initiate arbitration within the stipulated time, the order passed by this Court today shall stand automatically vacated and the re-possessed vehicle shall also be redelivered back to the respondents by the applicants unconditionally;

¶47

f)In case, the Advocate Commissioner requires Police assistance due to any law and order problem or due to any obstruction caused by the respondents or by any third party, while re-possessing the vehicle, the advocate commissioner is at liberty to seek police assistance from the concerned police station and the police department shall grant police protection accordingly. In case, break open of the premises, where the vehicle is located, is required, the Advocate Commissioner shall break open the premises in the presence of the police and take an inventory and thereafter re-posses the vehicle;

¶48

5/6

¶49

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

¶50

Arb Appln No.723 of 2025

¶51

vum

¶52

ABDUL QUDDHOSE,J.,

¶53

g)The Advocate Commissioner shall be paid an initial remuneration of Rs.25,000 /- and on receipt of the same, the advocate commissioner shall proceed to execute this order. All the boarding, lodging and travelling expenses for the Advocate Commissioner shall be borne by the applicants.

¶54