M/S.Indusind Bank Ltd v. Appalaraju Majji And Another

C.SARAVANAN, J.

Despite notice being served on the respondents, there is no representation on behalf of the respondents.

2.The application has been filed by the applicant for the following reliefs:

"to direct the respondents to furnish security for the Agreement value a sum of Rs.1042551/- being the Claim of the Applicant at present arising under the Loan Agreement No.ATV00241L dated 31.05.2022 against the respondent, within such time as this Court may stipulate and in case of default to order Attachment before Judgment of the immovable property of the first respondent more fully described in the Schedule to the Judge's summons and the copy of the order to be sent to the Principal District Judge, Vizianagaram."

3.By an order dated 21.09.2023, this Court had directed the respondents to furnish security to the extent of total claim amount in the application on or before 16.10.2023, failing which, Court will be constrained to order attachment of the properties described in the schedule.

4.Despite service of notice and order of this Court, the respondents have not come forward to furnish security as was ordered by this Court vide its order dated 21.09.2023. 5.Under these circumstances, Court is inclined to allow this application by ordering attachment of the immovable property for a period of six months from today pending initiation of arbitration proceedings to resolve the inter se dispute between the petitioner and the respondent herein. This order of attachment shall be in force only for a period of six months from today.

6.It is open for the applicant to initiate the arbitration proceedings within such time before the Arbitrator in terms of the loan agreement dated 31.10.2022 and file an appropriate application for continuation of this order under Section 17 of the Arbitration and Conciliation Act, 1996 pending final award. In case, the applicant fails to invoke the arbitration Clause or fails to move appropriate application under Section 17, for interim protection, this order shall automatically stand vacated at

the expiry of six months from today. Copy of this order shall be transmitted to the Principal District Judge, Vizianagaram, for being duly intimated to the concerned SRO to make suitable endorsement in the records.

SCHEDULE OF PROPERTY 1.Property of first respondent:

Viziayanagaram division, Nellimarla Sub District, Gurla Mandalam, Gurla gram panchayat, Gurla Village, as per revenue accounts, account No.294 girayat, dry site is Item 1. Survey No.168.15 Ac.0.13 1⁄2 cents i.e.653.4 sq.yards Item 2. Survey No.167.23 Ac.0.026 cents i.e. 1258.4 sq.yards Bounded on follows:

East:Rasta (Passage) South:Datta Estates Property West:Datta Estates Property North:Gedda Value of Property:Rs.22,95,000/- approx.

30.10.2023 jas

C.SARAVANAN, J.

jas 30.10.2023