Cholamandalam Investment And Finance Co., Ltd v. Malik Ram Sahu S/O.Shankar Lal Sahu

Application No.

of 201 M.GOVINDARAJ.J, This application has been filed by the applicant/finance company under Section 9 of the Arbitration and Conciliation Act, 1996, to appoint Mr.Ashish Kumar Shukla, Branch Business Manager, Simga as a 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 his men, agents, servants from his premises or wherever found with Police aid and break open of premises if necessary.

2. The respondent availed of a vehicle loan from the Applicant-company and executed a loan agreement No.XTRARPV00000876182 dated 29.12.2012, for a sum of Rs.570150/- to be paid in 10 Half yearly installments. The first installment commenced from 01.07.2013 and the re-payments were to run till 01.01.2018. It is stated that as on 13.11.2018, a sum of Rs.239,620.15 is outstanding. In terms of the loan agreement executed by the respondent, the applicant/Finance company is entitled to re-possess the vehicle in the event of default committed by the respondent. It is also submitted that the continued use of the vehicle by the respondent would depreciate its value.

3. The learned counsel for the applicant would submit that an award has been passed on 13.11.2018 in Arbitration Case No.CTM237/18.

4. Therefore, considering the facts and circumstances of the case and in view of the apprehension expressed in the affidavit filed in support of this application, this Court is satisfied that it is just and convenient that an order of appointment of a Receiver is made and accordingly, Mr.Ashish Kumar Shukla, Branch Business Manager, Simga as Receiver to take custody of the vehicle.

5. The receiver is entitled to take possession of the vehicle from the respondent or its 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.

6. The receiver shall seize the vehicle within a period of four months from the date of receipt of a copy of this order. The said period shall expire thereafter.

7. As the learned counsel for the applicant would submit that an award of arbitration between the applicant and the respondent has been passed as early as on 29.03.2018 in Arbitration Case No.CTM237/18, the Receiver shall preserve the vehicle without alienating or encumbrance thereof till orders are passed by this Court in this application. In case the respondent comes forward to regularise the default and undertakes to pay the outstanding installments, the applicant may at his discretion consider to re-schedule in the repayment of the balance amount payable by the respondent. In case there is a re-scheduling of the repayment of the loan, the applicant shall release the vehicle.

8. Notice returnable in six (6) weeks. Private notice is also permitted. Post after six weeks.

03.12.2018 msr/ebsi Note :

1. 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.

2. Issue order copy within four weeks.

M.GOVINDARAJ,J.

msr/ebsi Application No.

of 2018 03.12.2018