Tata Motors Finance Limited v. Samsuj Jaman

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL ARBITRATION PETITION NO.47 OF 2025 Tata Motors Finance Limited

...Petitioner

Versus

Samsuj Jaman

...Respondent

Mr. Gaurav Jangle a/w. Akshata Jain i/b. I.V. Merchant and Company, Advocates for Petitioner.

CORAM: SOMASEKHAR SUNDARESAN, J.

DATE : MARCH 13, 2025 PC :

1.

This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking interlocutory protective reliefs in connection with disputes and differences relating to Loan cum Hypothecation cum Guarantee Agreements dated June 29, 2022 and November 29, 2023 ("Agreements") that were executed to finance commercial vehicles. The commercial vehicles financed pursuant to the Agreement are listed at Exhibit 'C' to the Petition. Clause 23 of the Agreements contain the arbitration clause, which, in the interest of brevity, is not extracted herein. The Agreements contain an explicit clause for re-possession of the vehicles in Clause 13. Digitally signed by AARTI GAJANAN PALKAR Date:

2025.03.29 16:32:58 +0530 AARTI GAJANAN PALKAR

2.

The Respondent committed a default in servicing the loan. It is seen from the record that defaults occurred under the Agreement and a loan recall-cum-invocation notice was issued on July 27, 2024. Learned Counsel for the Petitioner submits that the amount due under the Agreement, as claimed by the Petitioner from the Respondent is to the tune of Rs.92,05,767.21. It is seen from the record that this Petition has been served on the Respondent but the Respondent has not appeared.

3.

Learned Counsel for the Petitioner submits that there is an evident default, and despite issuance of a loan recall cum invocation notice, there is no sighting of the vehicles financed (the subject property relating to the arbitration). He submits that the vehicles run the risk of getting lost or dissipated, rendering the arbitration infructuous. Consequently, he seeks urgent interlocutory relief. 4.

Since despite notice, the Respondent has not appeared and have not replied to the notice issued by the Petitioner. In these circumstances, Learned Counsel seeks interim reliefs. A case has been made out for grant of such reliefs as moulded below, which would apply pending the consideration of further interim relief by the Arbitral Tribunal that would be constituted in the matter:

A) The Respondent is hereby injuncted, whether by themselves, or through servants, assigns, employees, agents, representatives, officers, or any other person/s claiming through or under them or under any instrument, whatsoever, from in any manner selling, alienating, transferring, parting with the possession of, encumbering, dealing with, disposing of or creating any third party rights or interest of whatsoever nature and in any manner whatsoever in respect of their hypothecated commercial vehicles (more particularly described at Exhibit C to the Petition);

B) The Court Receiver of this Court is hereby appointed to take possession of the vehicles listed in Exhibit C. The Respondent is hereby directed to disclose the current and exact location of the hypothecated vehicles listed in Exhibit C to the Petition, on oath and to hand over peaceful possession of the Hypothecated Vehicles to the Court Receiver, with the Petitioner acting as the agent of the Court Receiver; and C) The Court Receiver and the Petitioner are hereby authorised to seek assistance of the police from the appropriate concerned police station upon payment of necessary charges for seeking police assistance for taking physical possession of the hypothecated vehicles as described in Exhibit C to the Petition as per the repossession clause of the said Loan Agreements.

5.

It is made clear that should the Respondent be desirable of varying, altering or vacating the ad-interim relief granted hereby, the Respondent may appear on the next date and present his say. 6.

Since the jurisdiction under Section 9 enables taking interim temporary measures in aid of arbitration, it is imperative that the Petitioner invokes arbitration. Such invocation shall be effected within

a period of two weeks from the date of upload of this order on the website of this Court.

7.

With the aforesaid directions, this Petition is stood over to April 15, 2025.

8.

All actions required to be taken pursuant to this order, shall be taken upon receipt of a downloaded copy as available on this Court's website.

[ SOMASEKHAR SUNDARESAN, J.]