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

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

What the court decided

AI extract

Outcome

Application granted in full: Mr.Pankaj Sirauthia, Area Receivables Manager of the applicant, appointed as Party Receiver to seize and take possession of the Hyundai Creta 1.5 SX from the respondent or wherever found, with police assistance and break-open powers as directed; asset returnable if dues cleared, and to be dealt with only subject to the arbitral award.

Issue for consideration

Whether the applicant (financier) has made out a prima facie case for appointment of its own employee as Party Receiver, under Section 9 of the Arbitration and Conciliation Act, 1996 read with Order XIV Rule 8 of the Original Side Rules, to seize and take possession of the financed vehicle lying with the defaulting respondent pending pending arbitration proceedings.

Court's answer

This Court held that the applicant has made out a prima facie case for appointment of a Party Receiver, noting that arbitration proceedings have been initiated and are pending before the learned Arbitrator.

Ratio / Principle

The Court was satisfied with the prayer in the application and appointed Mr.Pankaj Sirauthia, Area Receivables Manager, as Party Receiver to seize and take possession of the Hyundai Creta 1.5 SX (Engine No.G4FLPV624340, Chassis No.MALPC812LPM599275, Registration No.UP93CB9036) from the respondent or wherever and with whomsoever found.

Key takeaways

Police assistance protocol for the seizure: the Party Receiver may requisition the local police station, whose Station House Officer shall send police personnel along with him; break-open of locks is to be done in the presence of police who will counter-sign the record and re-lock the premises; if the jurisdictional police prove uncooperative, the Receiver may approach the Superintendent of Police, who shall provide all necessary assistance.ratio¶6
If the respondent makes good the unpaid installments or makes substantial payment of dues to the satisfaction of the applicant, the applicant shall return the seized asset in the condition in which it was re-possessed.ratio¶7

Detailed headnote1 paragraphs

Interim measure under S.9(1)(ii)(a)(b)(d) & (e), Arbitration and Conciliation Act, 1996 (with Order XIV Rule 8, Original Side Rules): financier's application to appoint its own employee as Party Receiver to repossess a financed Hyundai Creta 1.5 SX from a defaulting borrower, arbitration already pending. Held, disposing of the application (respondent set ex parte): a prima facie case existed for appointment of a Party Receiver; Mr.Pankaj Sirauthia, Area Receivables Manager, appointed as Party Receiver to seize the vehicle wherever found, with power to requisition local police (SP to assist if jurisdictional police uncooperative) and to break open locks in police presence; if the respondent clears unpaid installments or pays substantially, the asset is to be returned in the condition re-possessed; the asset is to be kept in good condition and dealt with only subject to the arbitral award. (Madras HC, K.Kumaresh Babu, J., 18.06.2026)

Arb Appln No. 687 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 18.06.2026

CORAM

THE HON'BLE MR.JUSTICE K.KUMARESH BABU

Arb Appln No. 687 of 2026

M/s.Cholamandalam Investment and Finance Company Limited, Chola Crest, C54-55 & Super B – 4, Thiru-vi-ka Industrial Estate, Guindy, Chennai – 600 032, Represented by its Authorised Signatory.

..Petitioner(s)

Vs

Shishupal S, S/o.Sugar Singh Pal

..Respondent(s)

Prayer Arbitration Application under Order XIV Rule 8 of Original Side Rules read with Section 9(1)(ii)(a)(b)(d) & (e) of the Arbitration and Conciliation Act, 1996 praying to appoint employee of the Applicant viz ., Mr.Pankaj Sirauthia, Area Receivables Manager , as Receiver to seize and take possession of the vehicle which is morefully described in the schedule to the Judges Summons which is lying in the custody of respondent or respondent’s men, agents, servants from respondent premises or wherever found with Police aid and break open of premises if necessary.

For Petitioner(s): Mr.D.Pradeep Kumar For Respondent(s): No appearance

O R D E R

This application has been filed to appoint employee of the Applicant viz.,

Mr.Pankaj Sirauthia, Area Receivables Manager, as Receiver to seize and take

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possession of the vehicle which is morefully described in the schedule to the Judges Summons which is lying in the custody of respondent or respondent’s men agents, servants from respondent premises or wherever found with Police aid and break open of premises if necessary.

2. The learned counsel appearing for the applicant would submit that the applicant had provided a loan to the respondent for the purchase of the vehicle viz., Hyundai Creta 1.5 SX, bearing Engine No.G4FLPV624340, Chassis No.MALPC812LPM599275 and Registration No.UP93CB9036 and also a Loan Agreement had also been entered by the respondent with the applicant on 18.01.2024. He would contend that there is some unremained installments that are to be made by the respondent and that in spite of repeated demands, the respondent had failed to regularize the default and had continued to not pay the EMIs. He would further submit that considering the facts of the case, the applicant had sought for an appointment of a party receiver which would be more effective.

3. In spite of notice having been effected on the respondent, the respondent had neither chosen to appear before this Court in person nor is being represented by a counsel. The name of the respondent has been reflected in the cause-list. He was called absent and set ex parte .

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4. I have considered the submissions made by the learned counsel for the applicant and also perused the materials placed on record.

5. This Court is of the view that the applicant has made out a prima facie

case for appointment of a Party Receiver. It is to be noted that the arbitration proceedings had been initiated and it is pending before the learned Arbitrator.

6. Upon considering the facts and circumstances of the case and the submissions made by the learned counsel for the applicant, this Court is satisfied with the prayer sought for in this application and in fine, Mr.Pankaj Sirauthia, Area Receivables Manager, as Party Receiver to seize and take possession of the asset viz., Hyundai Creta 1.5 SX, bearing Engine No.G4FLPV624340, Chassis No.MALPC812LPM599275 and Registration No.UP93CB9036 from the respondent or any place belonging to the respondent or wherever found and with whomsoever it is found. It is also made clear that if police help is required, the Party Receiver shall make a request to the local police station within whose jurisdiction the vehicle is found and on such request being made, the Station House Officer shall send the Police Personnel along with the Party Receiver to seize the vehicle. If break open of a lock is required, the Party Receiver shall do so in the presence of the police personnel who will counter sign the record evidencing the break open of the lock and to re-lock the premises. If the Party Receiver finds any difficulty with the jurisdictional

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police, he is at liberty to approach Superintendent of Police, who shall provide all necessary assistance to him at the time of seizure of the vehicle.

7. If the respondent make good the unpaid installments or makes substantial payments of the dues to be paid to the satisfaction of the applicant, the applicant shall return the asset in the condition it was re-possessed. It is made clear that the asset shall be maintained in good condition and be only dealt with subject to the award to be passed by the arbitrator.

8. With the above terms, this application stands disposed of.

18.06.2026

Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No

Maya

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K.KUMARESH BABU, J.

Maya

Arb Appln No. 687 of 2026

Dated : 18.06.2026

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