Order 1

Order Details: COPY OF ORDER
Pdf Text: ARBTN. NO. 1853/2026
IN THE COURT OF SH AKBAR SIDDIQUE, DJ-04
NORTH, ROHINI COURTS, DELHI.
ARBTN 1853/2026
M/s . PAYAL PORTFOLIO PVT.LTD.
C/O 86 CHITRA GUPTA ROAD
PAHARGANJ NEW DELHI-110055
THROUGH IT’S AR
SHRI. HIMANSHU CHOPRA
….. Petitioner
VERSUS
NARESH KUMAR
S/O HARBAN SINGH
R/O G-95 VIJAY VIHAR PHASE 1 SECTOR 4
ROHINI ROHINI SECTOR 7
NORTH WEST DELHI-110085
….. Respondent
10.09.2026
O R D E R
Fresh petition u/s 9 of the Arbitration & Conciliation Act, 1996
received. It be checked and registered.
1. Ld. Counsel for petitioner.
2. The present petition has been filed under Section 9 of the
Arbitration and Conciliation Act, 1996 seeking appointment of
receiver to take possession of the vehicle E-RIKSHAW, bearing
Registration No. DL11ED2616, Engine No. 231172 and Chassis No.
782202 which stood hypothecated with the petitioner.
3. Case of the petitioner is that the petitioner is a company,
carrying on business of hire-purchase of vehicle and SH. HIMANSHU
CHOPRA constituted attorney is duly authorized to sign, verify and
institute the petition on behalf of the petitioner company. The
respondent approached the petitioner for purchase of vehicle E-
RIKSHAW, bearing Registration No. DL11ED2616, Engine No.
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231172 and Chassis No. 782202 and the petitioner financed the same
to respondent. An agreement of loan-cum-hypothecation dated
03.03.2025 was executed between the petitioner and the respondent.
Under the agreement, it was agreed that the respondent would
hypothecate and create first charge over the said vehicle in favour of
the petitioner company, as such, the vehicle stood surety for due
performance of the agreement. Under the agreement, petitioner
disbursed a sum of Rs.110000/- to the respondent, which was to be
repaid by the respondent in equal monthly installments of Rs.8305. It
is claimed that the respondent failed/avoided to make the payment, as
per schedule and after lapse of months/years, respondent has not paid
9.5 installment(s). It is stated that as on date, respondent is liable to
pay a sum of Rs.93250/-. The petitioner is having apprehension that
respondent is contemplating to shift the vehicle elsewhere. The
agreement entered into between the parties contains arbitration
clause/(s), which the petitioner intends to invoke. The petitioner has
prayed for appointment of SHAHSI, as receiver of making vehicle E-
RIKSHAW, bearing Registration No. DL11ED2616, Engine No.
231172 and Chassis No. 782202.
4. It has been argued by the ld counsel for the petitioner that the
balance of convenience lies in favour of the petitioner and if the
‘RECEIVER’ is not appointed, 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 straightway passed. In support of
arguments advanced, judgment in case of GE Capital Transportation
Financial Services Ltd v Raj Tours Private Ltd. Reported as 159(2009)
DLT 440 has been relied, in which, the Hon’ble High Court had
appointed the RECEIVER to take the possession of the vehicle, as the
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ARBTN. NO. 1853/2026
respondent had failed to make the payment of the installments.
Another judgment relied is in this case of 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. Another
judgment relied upon is in the case of Sundaram Finance Ltd v NEPC
India Ltd., reported as (1992) 2 SCC 479 wherein it has been held that
interim order can be sought from the Court, even before
commencement of the proceedings. It was further held that Court is
not debarred from dealing with the application under Section 9 of the
Arbitration and Conciliation Act, merely, because no notice has been
issued. Next, judgment is in the case of Citicorp Finance (India) Ltd.
V Neeraj Jain & Anr., (FAO 283/205, DOD: 20.09.2005, by Hon’ble
High Court of Delhi), in which, it was held that delay occasioned due
to issuance of notice, thereby, preponement of interim protection, to
which, the appellant appears entitled, is likely to defeat the object of
filing of the petition. It was held that the ld Trial Court ought to have
passed an ex-parte order, appointing a receiver to secure possession of
the vehicle.
5. Perusal of agreement shows that the vehicle in question can be
repossessed by the petitioner, in case of default by the respondent. As
per Judgment Sundaram Finance, (Supra), and Citicorp Finance
(India) Ltd., (Supra), there is no requirement of issuance of notice to
the respondent before passing an ex-parte order. An ex-parte for
appointment of ‘RECEIVER’ can be passed without issuance of such
notice to the respondent.
6. Accordingly, in view of the aforesaid judgments and facts and
circumstances of the case, a balance of convenience lies in favour of
the petitioner and in case ex-parte order, regarding appointment of
‘RECEIVER’ is not passed, it would cause irreparable loss to the
petitioner. In case exparte ‘RECEIVER’ is not appointed, there is
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likelihood of disposal of hypothecated vehicle by the respondent and
that its value may depreciate day by day. Consequently, I, hereby
appoint SHAHSI, as receiver of making vehicle E-RIKSHAW, bearing
Registration No. DL11ED2616, Engine No. 231172 and Chassis No.
782202 from the respondent of any other person found in possession
thereof. RECEIVER is authorized to take appropriate police
assistance, if required. However, the vehicle shall not be sold till
further order of this Court.
7. The petitioner is directed to refer the matter to the Arbitrator
within three weeks. The petitioner is further directed not to transfer
the 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.
8. In case, vehicle is repossessed, ‘RECEIVER’ shall report to the
local police station and shall submit the compliance report before this
Court within three days of the repossession of the vehicle in question.
The copy of the order be given to the ‘RECEIVER’ on his furnishing
complete details of his residence, contact number, etc, alongwith
proof.
9. The receiver shall take over the possession of the vehicle from
the respondent at the address(es) given in the loan application. If the
vehicle is not available at the said address(es), the receiver shall be at
liberty to recover the vehicle wherever found. However, the receiver
shall not stop a running vehicle on the road to forcibly take out the
driver to take the possession of the vehicle. The receiver shall also not
make any attempt to block the passage of a vehicle to bring it to a halt
to take its possession.
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10. The receiver shall avoid taking the possession of the vehicle if
the vehicle is occupied by a woman who is not accompanied by a
male member or an elderly infirm or physically/mentally challenged
person. In such cases, the receiver shall take the possession of the
vehicle from the borrower's residence.
11. The receiver shall be at liberty to take the assistance of the local
police, if required, for taking over possession of the vehicle. The
concerned SHO shall provide assistance to the receiver as and when
requested.
12. The receiver shall also ensure that the repossession of the
vehicle does not result in any breach of peace. In the event of any
breach of peace, the receiver shall not proceed without assistance of
police.
13. At the time of taking the custody of the vehicle, the receiver
shall deliver a copy of this order to the person from whom the
possession it is taken
14. At the time of taking the custody of the vehicle, the receiver
shall take the photographs of the vehicle from different angles
alongwith the person(s) occupying the vehicle as well as place of
taking over the possession.
15. The receiver shall remain personally present at the time of
seizure of the vehicle and shall prepare an inventory of the
articles/accessories found in the vehicle and shall furnish the copy of
the inventory to the person from whom the possession is taken. The
exact date and time of the seizure shall also be noted down and copy
of the seizure memo shall be supplied to the respondent or his
representative at the spot itself. Before taking possession of the
vehicle, the respondent shall be permitted to remove his belongings, if
any from the vehicle.
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16. 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.
17. 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 &
Conciliation (Amendment) Act, 2015.
18. The Receiver shall not repossess the vehicle if the respondent
pays Rs.93250/- out 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.
19. Compliance report be filed on 11.12.2026
PRONOUNCED IN THE OPEN COURT ON THIS 10TH DAY OF
SEPTEMBER, 2026.
(Akbar Siddique)
DJ-04, North, Rohini Courts,
Delhi/10.09.2026
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