M/S. Sundaram Finance Limited v. Mr. G. Rajendran

Application No.6637 of 2015 RAJIV SHAKDHER,J.

This application is filed under Section 9 of the Arbitration and Conciliation Act 1996 seeking a direction to the respondents to furnish security for a sum of Rs.5,40,850.58, failing which, to order attachment of the property morefully described in the schedule to the judges summons.

2. In this application, notice was issued to the respondents, despite which, the respondents have not entered appearance. Learned counsel for the applicant says that already respondent No.1 has been given up as party to the proceedings. This fact was also borne out from the proceedings dated 22.3.2016. Further more, by order dated 06.04.2016, the respondent No.2 was directed to furnish security within a period of four weeks from the date of receipt of a copy of the order.

2.1. This Court directed the Registry to communicate the said order, i.e. order dated 06.04.2016, to the respondent No.2. That apart, the applicant was also permitted to communicate the said order privately.

2.2. I am informed by the Registry that the communication of the order, i.e. order dated 06.04.2016 was sent to the respondent

No.2. Despite service, the respondent No.2 has not chosen to appear.

3. Learned counsel for the applicant prays for attachment of the immovable property described in the schedule appended to the judges summons.

4. It may be noted that it is the case of the applicant that the respondents have availed loan in the sum of Rs.7,27,663/- under the Loan Agreement dated 22.04.2014 qua the purchase of the vehicle Leyland 2214 bearing Registration No.TN-48E-1216. The said amount was to be paid in 35 Equated Monthly Instalments (EMIs). The first instalment was to commence from 03.06.2014, while the last instalment was payable on 03.04.2017. The applicant submits that under the aforementioned Loan Agreement, the respondents have undertaken to repay the total loan amount of Rs.7,27,663/- along with finance charges.

5. Learned counsel for the applicant says that the respondents have not adhered to the obligations undertaken under the aforementioned loan agreement. It is the case of the applicant that the respondents are liable to pay a total sum of Rs.5,40,850.58 as on 02.09.2015.

6. Learned counsel for the applicant further states that arbitration proceeding has been initiated and, consequent thereto,

an award has been passed in the matter concerning the parties.

7. It is clear that the respondent No.2 is moving towards a situation where the award shall become a paper decree. In this circumstance, there shall be an order of attachment qua the property described in the judges summons to the extent of the claimed amount, i.e., Rs. 5,40,850.58. For the sake of convenience, the particulars of the said property are noted hereunder: SCHEDULE In the Dist of Trichy, Registration District of Ariyalur, Thuraiyur Sub Registration Circle, Venkatesapuram Village, Natham S.No.195/3, New Natham S.No.195/18, in this plot bearing No.17, bounded West of plot No.15 and Munuswamy's house, East of Sivakolunthu's house, South of Rathinam Pillai's house, North of village common well, in this East to West 24 feet, North to South 21 feet, total 504 square feet of land, Estimated Value Rs.1,50,000/-

8. Since the award has already been passed, the parties are given liberty to take necessary steps hereafter, albeit, in accordance with law.

9. Accordingly, this application is disposed of in the aforesaid terms.

17.08.2016 suk

RAJIV SHAKDHER,J.

Suk Application No. 6637 of 2015 17.08.2016