Order 1

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: CNR No. DLCT01-019047-2024
Arbtn no. -972/24
AXIS BANK LTD. v. RATAN LAL
09.12.2024
Fresh petition under Section 9 of the Arbitration and Conciliation Act,
1996 received by way of assignment. It be checked and registered.
Present: Ms. Sunita Singh, Ld. Counsel for the petitioner.
1. Certificate under Section 63 of the Bhartiya Sakshya
Adhiniyam, 2023 filed on behalf of the petitioner today.
2. At this stage, it is submitted by Ld. Counsel for the petitioner
that the petitioner is only claiming the overdue amount of 3
installments as on date which is amounting to Rs.1,80,600/-. Heard.
Separate statement of Ld. Counsel for the petitioner to this effect is
recorded today before the Court.
3. Heard. Perused. This is a petition under Section 9, Arbitration
and Conciliation Act, 1996 for seeking the appointment of a receiver
to take possession of the vehicle/Tractor make “ESCORTS,
39HP-E/FT35” bearing registration No. RJ08RC2525, engine No. --
E2566020 chassis No. --T042571070GK.
4. Vide a written Loan cum Hypothecation Agreement bearing no.
LNR022806720658 dated 15.11.2021 petitioner advanced a loan of
Rs.4,20,617/- to the respondent which was repayable in instalments of
Rs.60,200/- in 60 equated instalments. However, the respondent failed
to maintain the financial discipline and as on date there is an overdue
of 3 installments amounting to Rs.1,80,600/-. The petitioner then was
constrained to recall the loan amount vide loan recall notice dated
04.11.2024. As per the petitioner, the respondent is liable to pay a sum
of Rs.1,80,600/-.
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5. The petitioner vehemently contends that it is likely to suffer ir-
reparable loss as there is apprehension that the respondent may dis-
pose of the vehicle and if an ad-interim
ex parte order is not passed for
the appointment of a receiver for re-possession of the vehicle, then the
same may defeat the very purpose of filing the present petition.
6. Considering the aforesaid proposition of law and the fact that
the amount in default is 03 EMIs, the petitioner's apprehension that the
respondent may dispose of the vehicle during the pendency of the dis-
pute is not totally misconceived. Furthermore, the respondent is a de-
faulter of EMIs till the filing of the petition and as such delaying the
grant of interim relief may defeat the very object of filing the instant
petition and the application under disposal. Accordingly, this Court is
satisfied that the petitioner has been successful in making out a
prima
facie case for the grant of ad interim
ex parte relief. Accordingly, the
following directions are being passed: -
(i) Mr. Honey Yadav, is appointed as receiver for vehicle make
“ESCORTS, 39HP-E/FT35” bearing registration No.
RJ08RC2525, engine No. --E2566020 chassis No. --
T042571070GK from the respondent, his agents or any other
person found possessing the vehicle.
(ii) The receiver shall file in the Court the Resolution by Board of
Directors that he is duly authorized to act on behalf of the
company within 3 days of passing of the order as already
furnished.
(iii) 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 from whose possession the vehicle is possessed and
the petitioner who shall file the same in court along with his
report.
(iv) This condition of vehicle shall be noted and the receiver shall
take photograph of the re-possessed vehicle from all sides and
shall ensure that vehicle is kept in the same condition as it was
re-possessed.
(v) An appropriate receipt shall be given to the person from
whose custody the vehicle is taken. The vehicle in question shall
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not be sold or disposed of or the possession thereof parted with
without due permission of the court.
(vi) In case the respondent clears all the installments due against
the loan agreement, before such repossession, the vehicle shall
not be repossessed. Moreover, if vehicle is being driven by a
female, receiver will not repossess the vehicle forcibly rather
would show the orders of the court and would ensure the grace
and safety of such female and try to take the possession of the
vehicle from her place of destination.
(vii) An affidavit along with the report indicating repossession of
vehicle be filed within 3 days of its repossession along-with its
photographs and inventory as mentioned aforesaid.
(viii) The receiver shall inform the respondent the option of resolving
the dispute amicably by settlement before the Mediation Cell, Tis
Hazari District Courts, Delhi and will also give a copy of this order
to the respondent at the time of repossessing the vehicle.
(ix) The petitioner shall refer the dispute to arbitration in accordance
with Law if not already referred for appointment an arbitrator within
four weeks from today and inform the Court in writing about the
same on the next date.
(x) 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.
(xi) This order shall remain in operation for a next date of hearing by
60 days during which vehicle can be repossessed. Thereafter
petitioner shall not be permitted to repossess the vehicle under this
order.
7. The receiver shall submit his report within 10 days of taking
custody of the vehicle along with the photographs and the inventory as
mentioned above.
8. The petitioner shall appoint the Arbitrator and shall ensure that
the arbitration proceedings are initiated within one month from today.
The receivers shall submit a copy of his report before the Arbitrator.
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The Arbitrator shall decide the disputes referred for arbitration unin-
fluenced by the present order. The parties shall be at liberty to apply to
this Court or to the Arbitrator for modification of this Order. This Or-
der shall remain in force till it is modified with this court or by the Ar-
bitrator during the arbitration proceedings.
9. Issue notice of the present petition to the respondents on the
filing of PF/RC/Speed Post, with acknowledgment due on 26.03.2025
Necessary steps be taken within seven days. Order be given
dasti.
(NEHA PALIWAL SHARMA)
DISTRICT JUDGE-03, CENTRAL,
THC/DELHI/09.12.2024
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