Order 2

Order Details: COPY OF ORDER
Pdf Text: ARBTN No. 1694/26
M/s ECO STAR SECURITIES & CREDIT P
VS
SURESH
29.08.2026
File is taken up today as 27.08.2026 was declared a holiday vide notification
no. 85/G-4/Genl-I/DHC dated 21.08.2026 passed by the Hon’ble Delhi High
Court and now the cause list of two days i.e. 27.08.2026 and 29.08.2026 are
being taken up.
Present: Ms. Muskan, Ld. Counsel for petitioner.
Heard. Record is perused carefully.
It is an application under Section 9 of Arbitration and
Conciliation Act, 1996 seeking interim relief of appointment of receiver and to
take possession of subject vehicle.
As far as the territorial jurisdiction is concerned, the seat of the
arbitrator is in North Delhi, therefore, the present application is maintainable
before this Court. A sum of Rs. 2,99,500/- is to be recovered from respondent.
This sum is below the specified value limit of Rs. 3 lacs so, the matter cannot
be entertained before the Commercial Courts in view of Section 2, 6, 10 (2)
and 12 (b) of the Commercial Courts Act 2018. In view of Section 2 (e) (i) of
the Arbitration and Conciliation Act 1996, the application under Section 9 of
Arbitration and Conciliation Act, 1996 needs to be decided by the Ld.
Principal Civil Court. Hence, this Court is satisfied that application is well
maintainable before this Court.
On merits, an interim relief of appointment of receiver with a direction
to take possession of the vehicle make TATA ACE having Registration no.
DL1LAD2453 having Engine no. C2158 and Chassis no. 51066 (hereinafter
referred as 'subject vehicle') is being prayed. Along therewith, an application
for grant of ex-parte ad-interim orders for appointment court receiver and
direction to take possession of the subject vehicle is also filed.
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It is the case of the petitioner that it is the non banking finance
company duly registered with the Reserve Bank of India and inter alia
engaged in the business of providing finance for various purposes. The
petitioner advanced a loan of Rs. 3,00,000/- to the respondent for purchase of
subject vehicle which was hypothecated under the loan agreement executed by
respondent. In terms of agreement, the loan was to be repaid by way of 24
installments of Rs. 16,500/- which started from 30.05.2024 to 30.05.2026. It
is the case of the petitioner that after availing the loan facility and enjoying the
possession of the vehicle, the respondent failed to adhere to financial
discipline and committed willful defaults in payment of the monthly
installments and there is an outstanding payment including 16 defaulted
EMIs amounting totaling to Rs. 2,99,500/-. The parties are bound by the
Arbitration Agreement in event any dispute arising between them. But the
matter has not been referred to any arbitrator for the purpose of Arbitration
proceedings by the petitioner company and submitted to be referred soon in
the event of non-disposal of dispute after due process of law and and as of now
re-possession of vehicle is the sole way before the petitioner to secure his
present default and the future pending amount, therefore, it is prayed that the
executive of the petitioner company be appointed as a receiver so as to secure
the vehicle, repossessing the same for the proper and just trial for the
arbitrator.
Having perused the petition, the application and the documents
filed therewith as well as having heard Ld. Counsel for the petitioner, this
court is of the opinion that in the present case, the petitioner has made out a
prima facie case for appointment of receiver, since the respondent has failed to
fulfill his financial obligation under the Loan cum Hypothecation Agreement
to pay the monthly installment in terms of the agreement. There is a bonafide
apprehension that the respondent may sell or dispose the subject vehicle. The
balance of convenience also appears to be in favour of agreement between
the parties whereby the subject vehicle has been hypothecated as security for
the loan. Further, the petitioner may suffer irreparable damage as there is
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every possibility of harm be caused to the interest of the petitioner in case in
the interregnum, the respondent sells or disposes of the above said vehicle.
Accordingly, Mr. RAMESH is appointed as receiver in this case to take
custody of the vehicle make TATA ACE having Registration no.
DL1LAD2453 having Engine no. C2158 and Chassis no. 51066, from the
respondent or his agent. The following direction are accordingly issued to the
receiver:-
1. That Receiver shall first try to take over the possession of the aforesaid
vehicle from the house of the Respondent or the address(es) mentioned
by him in his application seeking loan, but if vehicle is not found at the
aforesaid places, the Receiver may recover it from any place wherever
it is found or stationed with or without the assistance of police but
without breach of peace.
2. That Receiver shall not stop the aforesaid vehicle if it is plying or
running on road, to forcibly take out the driver, to take the possession
of the aforesaid vehicle and the Receiver shall not attempt to block the
passage of the aforesaid vehicle too, to bring it to halt to take its
possession.
3. That the Receiver shall not take the possession of the aforesaid
vehicle, if the vehicle is on road and is occupied by any physically or
mentally challenged person, ill or infirm person, senior citizen or a
woman unaccompanied by any man. In such cases, the Receiver shall
repossess the aforesaid vehicle from the house of the Respondent or
house of such occupier or any such other place wherever vehicle is
found to be stationed.
4. That Receiver shall immediately show proof of his identity and
attested copy of this order to the Respondent, his agent or any other
person found to be in possession of the aforesaid vehicle and handover
to him a photocopy of his identity and this order against due
acknowledgment.
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5. The respondent, after receiving copy of this order may raise objections
against the Receiver for non-compliance of any of the terms stated in
this order by moving appropriate application fore the Arbitrator who
shall decide the same as per law.
6. The Receiver shall permit the Respondent, his agent or person found
to be in possession of the aforesaid vehicle to take the photographs of
the aforesaid vehicle, if he so desires.
7. That Receiver shall immediately record the condition of the recovered
vehicle separately and supply the copy of that record to Petitioner and
Respondent on the spot against due acknowledgment.
8. That after repossession of the vehicle, Receiver or Petitioner shall not
dismantle or damage the vehicle and keep the same in safe custody and
in case of any damage to the vehicle, the Petitioner shall be
responsible and it will duly compensate the Respondent.
9. An inventory in respect of the attachments in the vehicle in question
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 shall file the same in Court alongwith the report of the
Receiver.
10. The 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 in which it was repossessed.
11. 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 dispossessed of or parted without the permission of the court.
12. That if the Respondent, his agent or any person found to be in
possession of the aforesaid vehicle pays the pending EMIs up to
the date of repossession, on the date of repossession itself by any
mode of payment, the Receiver shall accept the same and issue
proper receipt to respondent and will not repossess the aforesaid
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vehicle and release the same on execution of proper Superdarinama
by the respondent in the name of receiver to the effect that
respondent will pay all the future installments regularly within time as
per aforesaid agreement and will not dispose of the aforesaid vehicle
without prior permission of the Arbitrator.
13. Petitioner shall file the affidavit indicating repossession of vehicle
within three days of its repossession alongwith its photograph,
inventory and valuation report.
14. That if the Respondent does not make the payment of the outstanding
amount to the Petitioner on the date of repossession, but makes the
payment of outstanding dues within thirty days from the date of
repossession, the Receiver shall release the aforesaid vehicle on
furnishing of Superdarinama on the aforesaid terms and conditions.
15. The Receiver will not seize the aforesaid vehicle, if an independent
third party interest is involved into it, without seeking prior permission
of the Court.
16. The Receiver shall take the police aid, if required. The concerned SHO
of the area where the vehicle is found shall render all possible
assistance to the Receiver for taking possession of the vehicle.
17. In case the vehicle is not repossessed within a period of one month
from the date of this order, the present order shall cease to be in
operation, since the present proceedings are only interim measures
with the dispute being required to be resolved by the arbitrator.
18. Arbitral proceedings shall commence within 90 days of this order in
terms of amended Section 9 (2) of Arbitration and Conciliation Act,
1996. For all further reliefs petitioner would be at liberty to approach
Ld. Arbitrator u/s 17 of the Act.
19. The petitioner is directed to refer the matter to the Arbitrator within
three weeks. The petitioner is further directed not to transfer the
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possession as well as title of the vehicle in question. Compliance
report regarding status of vehicle and appointment of Arbitrator be
filed in due course. In case, vehicle is repossessed, compliance
report be filed immediately after its repossession, failing which
interim order shall stand vacated.
Application seeking ad-interim relief stands disposed off.
Issue notice of the present petition to respondent on filing of PF/RC
and Speed Post, for 27.10.2026.
(Aanchal)
District Judge-03, Rohini Courts
North District, Delhi
29.08.2026
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