Order 1

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: ARBTN No. 1854/26 M/S ECO STAR SECURITIES AND CREDIT P. LTD. Vs. BABU LAL VERMA Page No. 1/4
ARBTN 1854/26
M/S ECO STAR SECURITIES AND CREDIT P LTD. Vs.
BABU LAL VERMA
10.09.2026
Present : Ms. Muskan, Ld. Counsel for the petitioner.
1. Fresh Petition u/s 9 of Arbitration & Conciliation Act, has been
received by way of assignment. It be checked and registered.
2. Ld. Counsel for the petitioner has relied upon Para No. 14 of the
judgment dated 04/03/2014 bearing OMP No. 150/2014,
“ION
Exchange (India) Ltd. Vs. Panasonic Electric Works Co. Ltd.”, decided by
the Hon'ble High Court of Delhi, wherein, Hon'ble High Court of Delhi
has held as under :-
“14. In these circumstances, we find ourselves unable to
agree with the view of the Learned Single Judge expressed
in his order dated 04/02/2014. We agree with the view taken
in Sai Consulting
(supra) and hold that the Courts at the seat
or place of arbitration would have territorial jurisdiction to
entertain an application under the said Act subject to the
provisions of Section 42 thereof, irrespective of the fact that
the cause of action arose elsewhere and / or the respondent
resides elsewhere.”
3. In view of the clause mentioned in the Agreement, arbitration
proceedings were to be conducted at Delhi and as such, Delhi Court has
the jurisdiction and the seat of the sole arbitrator is in Rohini, Delhi which
falls within jurisdiction of this Court.
4. Ld. Counsel for the petitioner has pressed for immediate orders
under Section 9 of the Arbitration & Conciliation Act, 1996 for
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appointment of the Receiver in respect of the vehicle of the respondent
which has been financed by the petitioner company.
5. As per the claim of the petitioner, the vehicle i.e. MAHINDRA
BOLERO, bearing registration No. DL1LV3192, Chassis No. 89718 &
Engine No. 90837 was financed by the petitioner for an amount of
Rs.1,50,000/- in favour of the respondent vide Loan-cum-Hypothecation
Agreement No. 3192. The petitioner has further stated that respondent has
failed to pay 05 EMIs as on date. It has been further stated that the
respondent is liable to pay the amount of Rs.76,250/- as on date to the
petitioner towards outstanding amount with over due.
6. Keeping in view the abovesaid submissions, this Court is of the
opinion that the delay in grant of the interim relief may defeat the very
purpose of filing the present petition and the application under disposal.
As such, the petitioner has been able to make a prima facie case for grant
of ad-interim ex-parte relief. Accordingly, the following directions are
hereby passed :-
(i) Sh. Rajesh Kumar, the Authorized Representative of the
petitioner is appointed as the Receiver in this case to take into
his custody the above mentioned vehicle from the respondent,
his agents or any other person found possessing the vehicle.
(ii) The Receiver shall take over the possession of the vehicle
from the respondent at the address/addresses given in the loan
application or from the place, wherever the same is found as
per the provisions of law, with liberty to take the assistance of
the local Police, if required, and the concerned SHO shall
provide assistance to the Receiver as and when requested.
(iii) At the time of taking the custody of the vehicle, the
Receiver shall take the photographs of the vehicle from
different angles, the Receiver shall prepare an inventory of the
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articles lying in the vehicle.
(iv) The Receiver shall deliver a copy of this petition and a copy
of the orders passed as on date to the person from whom the
possession is taken together with the inventory of articles, if
any.
(v) The Receiver shall keep the vehicle in safe custody and shall
not sell off the vehicle without the permission of the arbitrator.
If the respondent, makes the payment of the outstanding
defaulted dues, as on the date of possession, then, the Receiver
shall release the vehicle in question to the respondent.
(vi) The Receiver shall submit his report before the Court / the
arbitrator within a period of ten days from the date of
repossessing the vehicle along with the photographs and the
inventory mentioned above.
(vii) The respondent/ his representative from whose possession
the vehicle is seized shall be at liberty to move an appropriate
application before this Court or before the arbitrator, if
appointed, in case the respondent is aggrieved with the seizure
of the vehicle.
(viii) If the respondent is not in a position to clear the entire
outstanding installments, the Receiver shall give him another
opportunity to pay the outstanding installments within 30 days
of taking over the possession of the vehicle and in case the
respondent makes the payment of the outstanding installments
within the said period, the Receiver shall release the vehicle to
the respondent subject to an undertaking as aforementioned.
(ix) The petitioner shall refer the dispute to arbitration in terms
of the loan agreement, if not already referred for appointment
of the arbitrator within a period of four weeks from today and
inform the Court in writing about the same.
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(x) An affidavit be sworn to by the petitioner and be placed
before the Court within two weeks of taking possession of
vehicle that the person who received the copy of the petition at
the time of taking possession of vehicle was authorized to do
so and that it was not given to some third party who was not
responsible or who was not authorized to acknowledge any
Court notice on behalf of the Respondent.
(xi) 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 vehicles is found to be stationed.
(xii) The Receiver shall inform the respondent the option of
resolving the dispute amicably by settlement before the
Mediation Centre, Rohini Courts, Delhi and will also give a
copy of this order to the respondent at the time of repossessing
the vehicle.
7. Issue notice of the present petition to the respondent through all
permissible modes on filing of PF/RC by the petitioner for 21/11/2026. In
case, PF/RC is not filed within one week, then interim orders shall stand
vacated.
8. A copy of this order be given dasti to Ld. Counsel for the
petitioner, as prayed for, after filing of PF/RC.
(Amit Sahrawat)
DJ - 02/ North/ Rohini Court
Delhi/10.09.2026
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