Cholamandalam Investment And Finance Company Limited v. Laxmipati Balaji Infrastructure

PUSHPA SATHYANARAYANA, J.

This application has been filed by the applicant/finance company under Section 9 of the Arbitration and Conciliation Act, 1996, to appoint employee of the applicant, namely, Mr.Navneet Shrivastav, AMR, 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.

2. The respondent availed of loan from the Applicant-company for purchase of vehicle and executed a loan Agreement No.XVFPBPL00001524554 dated 31.10.2015 for a sum of Rs.20,00,000/- to be paid in 36 installments and the first installment commenced from 10.12.2015 and the re-payments were to run till 10.11.2018. As on 10.09.2018, the respondent is liable to pay a sum of Rs.1,921,762.31/- together with interest. In terms of the loan agreement executed by the respondent, the applicant/company is entitled to re-possess the vehicle in the event of default committed by the respondent. It is submitted that the continued use of the vehicle by the respondent would depreciate its value. 1/4

3. Notice sent to the respondent has been served and affidavit of service is also filed to that effect enclosing returned cover. Hence paper publication is also effected. Though the name of the respondent is also printed in the cause list, there is no representation for him either in person or through counsel.

4. Upon considering the facts and circumstances of the case, this Court is satisfied that the applicant has made out a prima facie case in its favour and accordingly, Mr.Navneet Shrivastav, AMR, of the applicant Company is appointed as Receiver to take custody of the vehicle. The receiver will be entitled to take possession of the vehicle from the respondent or his agent or any one in possession thereof. If necessary, the Receiver shall get police assistance and the Station House Officer of the concerned Police Station, within whose jurisdiction the vehicle is found, will render requisite assistance for this purpose.

5. The agreement entered into between the applicant and the respondent provides for arbitration in the event of disputes and differences between the parties. The learned counsel for the applicant would submit that an award of arbitration between the applicant and the respondent has been passed on 24.10.2017. 2/4

6. The receiver shall seize the vehicle within a period of eight weeks from the date of receipt of a copy of this order. However, in case the respondent make payment of the outstanding installments, the Receiver shall release the vehicle to the respondent.

7. In view of the above directions, this application is closed. 13.09.2019 drl The counsel for the applicant is permitted to receive the certified copy of the order of the Receiver and communicate the same to the Receiver.

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PUSHPA SATHYANARAYANA, J.

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