Final Order 1

Order Details: COPY OF ORDER
Pdf Text: IN THE COURT OF Ms. VANDANA
DJ-08 : Central : Room No. 152 : THC : Delhi.
Arbitration Petition No. 976/2024
Axis Bank Ltd. ………..Petitioner
Versus
Shankar Singh Rawat ……….Respondent
O R D E R
1. This order shall decide an application under Section 9 of
the Arbitration & Conciliation Act, 1996 seeking ex-parte interim
relief.
2. The request made by the petitioner for ex parte
appointment of receiver is however considered in view of the fact that
respondent may conceal or dispose of the vehicle in question, I deem
it appropriate and take it as a fit case where the receiver is to be
appointed at this stage for taking possession of the vehicle in question.
3. It is submitted by the Ld Counsel for petitioner that ex
parte order regarding appointment of receiver may be passed subject
to condition that Receiver shall not repossess the vehicle if the
respondent pays Rs.50,000/- (Fifty Thousands Only) of the total
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outstanding dues as on the date of the petition filed in the Court and
shall also duly issue a proper receipt for receiving the amount with the
apparent authority of the petitioner being reflected on the receipt itself.
It has been further argued by the Ld Counsel for petitioner that the
balance of convenience lies in favour of the petitioner and if the
Receiver is not appointed, an irreparable loss would be caused to it as
there is apprehension that the respondent may dispose of the vehicle.
It is further argued that there is no necessity to issue notice to the
respondent at this stage and ex parte order regarding appointment of
Receiver can be straightaway passed.
4. Ld. Counsel for the petitioner argued that Sh. Manoj
Sharma, an officer of the petitioner may be appointed as receiver to
take possession of the vehicle make SONALIKA, 50HP, E/ITLDI50,
bearing registration No. RJ-06RD-2824, Engine no.
3105NH14I1101559F29 and Chasis no. DXADR1108031S3, from the
possession of respondent, his agent or from any one else who is in
possession of the said vehicle and the receiver may also be allowed to
take assistance of police, if necessary for the said purpose. It is further
argued that the respondent has not been making any payment due
towards the loan taken by him which has resulted into loss to the
petitioner.
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5. I have heard the arguments of Ld. Counsel for petitioner
and perused the record carefully.
6. In the judgment in case titled as GE Capital
Transportation Financial Services Ltd. v. Raj Tours Pvt. Ltd reported
as 159(2009) DLT 440, the Hon’ble High Court had appointed the
Receiver to take the possession of the vehicle as the respondent had
failed to make the payment of the installments. In another judgment
titled as Jai Singh v. Indusind Bank Ltd reported as MANU/DE/4655/
2009, in which the order of Ld Trial Court for appointment of
Receiver was upheld. In the judgment titled as Sundaram Finance Ltd.
v. NEPC India Ltd, reported as (1999) 2 SCC 479, it was held that
interim order can be sought from the Court, even before
commencement of the proceedings.
7. In view of the averments made in the application, above
said judgments and the submissions made, the application under
Section 9 of the Arbitration & Conciliation Act, 1996 stands allowed.
Following reliefs are hereby granted to the petitioner:-
(i) Sh. Manoj Sharma, an officer of the petitioner is appointed as
receiver to take possession of the vehicle make SONALIKA, 50HP,
E/ITLDI50, bearing registration No. RJ-06RD-2824, Engine no.
3105NH14I1101559F29 and Chasis no. DXADR1108031S3, from the
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respondent, his agents or any other person found possessing the
vehicle.
(ii) The receiver shall have the right to gain possession of the
hypothecated vehicle purchased by the respondent out of the loan
amount i.e. SONALIKA, 50HP, E/ITLDI50, bearing registration No.
RJ-06RD-2824, Engine no. 3105NH14I1101559F29 and Chasis no.
DXADR1108031S3, from wherever place it be found, by unlocking or
towing or otherwise, through its authorized representative and with the
assistance of police, if necessary. The acquired vehicle shall be
sold/auctioned as per rules and its proceeds shall be adjusted towards
the amount recoverable from the respondent. It is needless to say that
the amount received in excess of recoverable amount shall be
transferred to the bank account of respondents under due intimation.
However, the amount so received if found deficient to satisfy the
claim, the claimant shall be at liberty to recover the reminder amount
by executing the arbitral award as per law.
(iii) After taking the vehicle in possession the receiver shall keep the
vehicle in safe custody for which the petitioner shall make appropriate
arrangements at his own cost, risk and responsibility.
(iv) An inventory in respect of the attachments in the vehicle shall
be made by the receiver and copy of the same be given to the person
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from whose possession the vehicle is possessed and the petitioner who
shall file the same in the Court along with his report.
(v) This condition of vehicle shall be noted and the receiver shall
take photograph of the repossessed vehicle from all sides and shall
ensure that vehicle is kept in the same condition as it was repossessed.
(vi) An appropriate receipt shall be given to the person from whose
custody the vehicle is taken. The vehicle in question shall not be sold
or disposed-of or the possession thereof parted with without due
permission of the Court.
(vii) The receiver shall have a liberty to approach the police
authorities concerned who are directed to provide all necessary
assistance to the receiver in obtaining a peaceful repossession of the
subject vehicle.
(viii) The SHO of the area within whose jurisdiction the address (s)
of the respondent is/are situated is hereby directed to give the police
help to the receiver, as required by him.
(ix) The receiver shall submit his report within ten days of taking
custody of the vehicle along with the photographs and the inventory as
mentioned above.
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(x) The petitioner is directed to commence the arbitration
proceedings, if not commenced earlier, within a period of one month
from today.
(xi) The maximum period for which this order shall remain effective
is 90 days. i.e. maximum time granted by this Court to the
applicant/petitioner under Section 9(2) of the Arbitration and
Conciliation (Amendment) Act, 2015.
(xii) The Receiver shall not repossess the vehicle if the respondent
pays Rs.50,000/- (Fifty Thousands Only) of the total outstanding dues
as on the date of the petition filed in the Court and shall also duly
issue a proper receipt for receiving the amount with the apparent
authority of the petitioner being reflected on the receipt itself.
8. Compliance report be filed in due course.
9. File be consigned to Record Room.
Pronounced in the open Court (VANDANA)
on 9th December, 2024 District Judge-08
Central District : Tis Hazari Courts
Delhi.
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