Cholamandalam Investment And Finance Co. Ltd. Vs Amresh Kushwaha — Arbitration | Madras HC (2026)

Cholamandalam Investment And Finance Co. Ltd. Vs Amresh Kushwaha — Arbitration | Madras HC (2026)

What the court decided

AI extract

Outcome

Appointment of Mr.Ramakant Tiwari (applicant's employee, Area Receivables Manager) as Party Receiver to seize and take possession of the MARUTI BALENO SIGMA (Engine No.K12NP4489576, Chassis No.MBHHWB13SRE778328, Registration No.UP57BS7073) from the respondent or wherever found, with police assistance through the local Station House Officer (escalation to the Superintendent of Police if needed) and power to break open locks in the presence of police who countersign the record; the asset is to be maintained in good condition and dealt with subject to the arbitrator's award, and returned if the respondent makes good the unpaid installments or substantially pays the dues to the applicant's satisfaction.

Issue for consideration

Whether, in a pending arbitration arising from the respondent's default on a vehicle loan, the applicant-financier should be granted interim relief by appointing its own employee as Party Receiver to seize and take possession of the financed vehicle from the respondent or wherever found, with Police aid and break-open of premises.

Court's answer

The Court found that the applicant has made out a prima facie case for appointment of a Party Receiver.

Ratio / Principle

The Court noted that arbitration proceedings have been initiated and are pending before the learned Arbitrator, underpinning the grant of interim relief.

Key takeaways

Mr.Ramakant Tiwari is appointed as Party Receiver to seize and take possession of the MARUTI BALENO SIGMA, bearing Engine No.K12NP4489576, Chassis No.MBHHWB13SRE778328 and Registration No.UP57BS7073.ratio¶31
Seizure may be effected from the respondent or any place belonging to the respondent or wherever the vehicle is found and with whomsoever it is found.ratio¶31
If police help is required, the Party Receiver shall request the local police station within whose jurisdiction the vehicle is found, and the Station House Officer shall send police personnel along with the Party Receiver to seize the vehicle.

Detailed headnote1 paragraphs

Madras High Court (K. Kumaresh Babu, J.) allowed an Arbitration Application under Order XIV Rule 8 of the Original Side Rules read with Section 9(1)(ii)(a)(b)(d) & (e) of the Arbitration and Conciliation Act, 1996 filed by M/s.Cholamandalam Investment and Finance Company Limited against borrower Amresh Kushwaha. Finding a prima facie case and noting that arbitration proceedings were pending before the learned Arbitrator, the Court appointed the applicant's employee, Mr.Ramakant Tiwari, Area Receivables Manager, as Party Receiver to seize and take possession of a MARUTI BALENO SIGMA (Engine No.K12NP4489576; Chassis No.MBHHWB13SRE778328; Registration No.UP57BS7073) from the respondent or any place belonging to him or wherever found and with whomsoever found. Police assistance is to be obtained through the local Station House Officer, with recourse to the Superintendent of Police on any difficulty; break open of locks is permitted in the presence of police personnel who countersign the record and re-lock the premises. The asset is to be maintained in good condition and dealt with only subject to the arbitrator's award, and returned if the respondent makes good the unpaid installments or substantially pays the dues to the applicant's satisfaction. Notice on the respondent had been returned unserved ('addressee not met'), and the respondent's own records disclosed only the address used in the application.