M/S.Cholamandalam Investment And Finance Company Limited v. Mr.Bijesh K.J.

KRISHNAN RAMASAMY, J., This application has been filed to appoint employee of the Applicant viz Ms.Sreena P.B., BA., LLB, LLM Junior Legal Executive, as Receiver to seize and take possession of the vehicle which is more fully 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 for the applicant submits that the applicant provided loan to the respondent for purchase of vehicle, viz., Eicher 10.80C bearing Engine No.E483CDAL513608 and Chassis No.MC232CRC0AL213030 and Registration No.KL-12-E-9239 Thereupon, the respondent has entered into loan agreement dated 22.05.2019 with the applicant. The brief details in nutshell are as follows:

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S.No.

Particulars Remarks 1.

Name of the lender The applicant 2.

Name of the borrower The Respondent 3.

Date of Loan Agreement 22.05.2019 4.

Loan Amount Rs.8,78,506/- 5.

No.of installments 61 monthly installments 6.

First installment 25.06.2019 7.

Last installment 25.06.2024 8.

So far installments paid 30.11 9.

Notice 07.10.2022 10.

Reply to the notice No 11.

Amount claimed Rs.4,57,080.85 12.

Arbitration proceedings initiated Undertakes to initiate

3. Learned counsel for the applicant further submits that the respondent, having availed the loan, failed to repay the same and committed default from 31st installment onwards and inspite of repeated demands, the respondent has not come forward to settle the due. He further submits that the hypothecated equipment is a movable asset and if it is kept in idle condition, it would get damaged and its value also gets deteriorated and hence he urges this Court to appoint a Receiver to seize 2/8

and handover the asset to the applicant bank morefully described in the schedule to the Judges summons available at the respondent's premises, in order to make the security effective and the money in dispute in arbitration is fully secured by way of sale of the asset in public auction after following due process of law.

4. After the filing of this petition, both Court notice and private notice had been ordered to the respondent. The private notice was returned with an endorsement "Unclaimed". However, the Court notice was served on the respondent. Despite the service of notice and printing the name of the respondent, no one has entered appearance on behalf of the respondent. It clearly shows that the respondent is not interest in contesting the matter.

5. Mr.D.Pradeep Kumar, learned counsel appearing for the applicant submits that in the present case, the vehicle is small and amount due is around Rupee Six Lakhs only, and if any Receiver is 3/8

appointed from here to seize the vehicle there, he would have to travel to and fro and stay there, which would cost more, which would be a burden to the applicant initially and subsequently, it would be transferred to the respondent and therefore, he requests this Court for appointment of Receiver from the applicant/company, who would be a legal person without having any criminal cases or disciplinary proceedings pending against him. The applicant has filed an affidavit stating that Ms.Sreena P.B., BA., LLB, LLM Junior Legal Executive, of the applicant/company, who is a law graduate and has legal background, dated 27.03.2023 stating as follows:- "11. I state that the employee who is sought to be appointed as Receiver is Ms.Sreena P.B., LLB., LLM.

, Junior Legal Executive and there is no complaint pending against the employee in police station or Bar council.

High Court."

6. Upon considering the facts and circumstances of the case, particularly value of the vehicle and expenses to be rendered towards seizure of the vehicle and the submissions made by the learned counsel for the applicant and the affidavit filed by Ms.Sreena P.B., BA., LLB, LLM Junior Legal Executive, of the applicant/company, this Court is satisfied that the applicant has made out a case in its favour and accordingly, Ms.Sreena P.B., BA., LLB, LLM Junior Legal Executive of the applicant/company is appointed as the Receiver to seize the vehicle, viz., Eicher 10.80C bearing Engine No.E483CDAL513608 and Chassis No.MC232CRC0AL213030 and Registration No.KL-12-E-9239 lying at the respondent's premises or wherever found and hand over the same to the custody of the applicant.

7. It is hereby made clear that if police help is required, the Receiver shall make a request to the local police station within whose 5/8

jurisdiction the vehicle is found and on such request being made, the Station House Officer shall provide suitable police protection to the Receiver to seize the vehicle. If break open of a lock is required, the Receiver shall do so in the presence of the Station House Officer who will counter-sign the record evidencing the break open of the lock and relock of the premises. It is made clear that shall not use any physical force while seizing the vehicle.

8. After seizure, the vehicle is to be handed over to the applicant or to their representative, after taking inventories. It is made clear that after seizure of the vehicle, the applicant shall not sell away the vehicle without permission of this Court/Arbitrator.

9. Accordingly, this Application is disposed of and no further order is required in this application.

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05.06.2023 nsa 7/8

KRISHNAN RAMASAMY, J., nsa 05.06.2023 8/8