Order 1

Order Details: COPY OF ORDER
Pdf Text: ARBTN. NO. 1881 OF 2026 1/6
IN THE COURT OF SH AKBAR SIDDIQUE, DJ-04
NORTH, ROHINI COURTS, DELHI.
ARBTN No. -1881/2026
M / s . DRISTI SECURITIES PVT LTD.
C / O 401 JHEEL KHURENJA
D E L H I - 110051
THROUGH IT’S A,R
SHRI. AJAY SHUKLA
……….Petitioner
VERSUS
ARIF KHAN
S/O SAMSUDDIN
R/O H NO.RC-180 GALI N O . 6 / 8 LOKPRIYA VIHAR
BEHIND NOORANI MASZID KHODA NEW DELHI
.....….Respondent
19.09.2026
O R D E R
Fresh Arbitration petition received by way of assignment. 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 make BAJAJ AUTO TSR,
bearing Registration No. DL1RV1148, Engine No. 34582
Chassis No. 25916 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 MR. AJAY
SHUKLA 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
BAJAJ AUTO TSR, bearing Registration No. DL1RV1148,
Engine No. 34582 Chassis No. 25916 and the petitioner financed
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the same to respondent. An agreement of loan-cum-hypothecation
dated 24.07.2025 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.270000/- to the respondent, which
was to be repaid by the respondent in 30 equal monthly installments
of Rs. 1170/- each. 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 05 installments. It is stated
that as on date, respondent is liable to pay a sum of Rs. 76600/-.
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 Sh. ANIKET DIPANSHU as receiver of making
vehicle BAJAJ AUTO TSR, bearing Registration No.
DL1RV1148, Engine No. 34582 Chassis No. 25916.
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
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possession of the vehicle, as the 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
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irreparable loss to the petitioner. In case exparte ‘RECEIVER’ is
not appointed, there is likelihood of disposal of hypothecated
vehicle by the respondent and that its value may depreciate day by
day. Consequently, I, hereby appoint Sh. ANIKET DIPANSHU as
receiver of making vehicle BAJAJ AUTO TSR, bearing
Registration No. DL1RV1148, Engine No. 34582 Chassis No.
25916 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
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receiver shall also not make any attempt to block the passage of a
vehicle to bring it to a halt to take its possession.
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
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vehicle, the respondent shall be permitted to remove his belongings,
if any from the vehicle.
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.76600/- 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 21.12.2026.
PRONOUNCED IN THE OPEN COURT ON THIS 19TH DAY OF
SEPTEMBER 2026
(AKBAR SIDDIQUE)
DJ-04, North, Rohini Courts,
Delhi/19.09.2026
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