Interim Order 2

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: Page no. 1 of 7
IN THE COURT OF DR. ASHISH AGGARWAL,
DISTRICT JUDGE-03, NORTH-WEST DISTRICT,
ROHINI COURTS, DELHI
17.08.2026
ARBTN no. 1795/2026
Piramal Finance Ltd. Vs. Shamim Praveen
ORDER
1. Vide this order, I shall dispose of the application under Section 9 of the
Arbitration and Conciliation Act for grant of ad interim exparte order for
appointment of receiver to take possession of vehicle make MARUTI
SUZUKI INDIA LTD IGNIS SIGMA bearing Registration No. HR 12
AN 3215 which was hypothecated by the respondent in the favour of the
petitioner vide loan agreement bearing No. UCL0000174765 dated
04.12.2024 for an amount of Rs.359378/- payable in EMIs of Rs.10370/-
each. It is stated that the respondent has failed to pay twenty five EMIs.
As per the account statement maintained by the petitioner, the
respondent is liable to pay a sum of Rs.264715/-. It is submitted that if
the interim relief is not granted, the petitioner will suffer irreparable loss.
Copy of Loan Agreement and statement of account have been placed on
record. It is submitted that vide legal notice dated 28.07.2026, the said
loan was recalled and respondent was requested to handover the
possession of the said property.
-- 1 of 7 --
Page no. 2 of 7
2. Further, it is averred that the said agreement contains an arbitration
clause which is provided in Article 8, wherein it is mentioned that the
parties expressly agree that all disputes arising out of and/or relating to
this agreement shall be referred to Arbitration and that the Arbitrator
shall be appointed by the lender. Further Ld. Counsel for
applicant/petitioner submitted that arbitration proceedings are to be
initiated and the seat of arbitration is fixed at Lawyers Chamber, Rohini
Court, Delhi which falls within jurisdiction of this court and hence this
court has jurisdiction to entertain the petition.
3. On these facts, it is stated that petitioner has strong apprehension that the
respondent may after receiving the notice of the petition may part with
possession or dispose off the property and the whole purpose of filing of
the petition will be defeated and petitioner shall suffer substantial loss
and injury if the present application for grant of ex parte ad interim order
is not allowed.
4. I have heard arguments of Ld. counsel for applicant/ petitioner. I have
also gone through the record.
5. It is submitted that there is no necessity to issue notice to the respondent,
at this stage and exparte order for appointment of receiver can be passed.
Cases titled as: G.E. Capital Transportation Financial Services Ltd. Vs.
-- 2 of 7 --
Page no. 3 of 7
Raj Tours Pvt. Ltd. 159 (2009) DLT 440 and Jai Singh Vs. IndusInd
Bank Ltd. MANU/DE/4655/2009 are relied upon. Further, in case titled
as: Sunderam Finance Ltd. Vs. NEPC India Ltd. (1992) 2 SCC 479, it
has been held that interim order can be sought from the court even
before commencement of proceedings. Further, it was held that the court
is not debarred from dealing with the application u/s 9 of the Act merely
because no notice has been issued.
6. It is also held in Citicorp Finance (India) Ltd. Vs. Neeraj Jain and Anr.
FAO 283/2005 decided on 20.09.2005 by the Hon'ble High Court of
Delhi 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 the petitioner. Hence, there is no
requirement of issuance of notice to the respondent at this stage.
7. Keeping in view that the property is hypothecated to the
applicant/petitioner as per the agreement and there is default in making
payments of EMIs and despite service of loan recall notice, the
respondent neither paid the outstanding amount nor handed over the
possession and therefore prima facie good case is made out and balance
of convenience also rests in favour of the applicant/ petitioner. Further,
in case ex parte interim order is not passed, the applicant/ petitioner
would suffer irreparable loss as it is strongly apprehended that the
-- 3 of 7 --
Page no. 4 of 7
respondent may dispose of or part with the possession of the property in
question in order to defeat the claim of petitioner.
8. Considering the aforesaid preposition of law and the fact that the
respondent is defaulter to the tune of Rs.264715/-, the apprehension of
the petitioner that the subject vehicle may be disposed off by the
respondent during pendency of dispute are not totally misconceived.
Furthermore, the respondent is a defaulter of EMI Amount and as such
delaying 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 grant of
ad-interim ex-parte relief. Accordingly, Sh.
Shivnandan Sharma
, Authorised Representative, having the location of
operation at Delhi, is appointed as a Receiver in this case to take into his
custody the vehicle make “MARUTI SUZUKI INDIA LTD IGNIS
SIGMA bearing Registration No. HR 12 AN 3215”
from the respondent,
his agents or any other person found possessing the vehicle.
Accordingly, the following directions are being passed:-
(I) Timing: the Vehicle shall be seized by the Receiver in between
8.00 AM to 6.00 PM only.
(II) No Delegation: The Receiver shall seize the vehicle personally
and shall not delegate this power to anyone.
(III) Place of repossession: The Receiver shall ordinary take over
the possession of the vehicle from the respondents) at the address
(s) furnished in the loan application. In case, the vehicle is not
-- 4 of 7 --
Page no. 5 of 7
available at the said address(s), the Receiver shall be at liberty to
recover the vehicle wherever found, however shall specify place &
reasons in his report.
(IV) Service of order: 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 has been taken.
(V) Personal Articles of Occupants: The respondent(s)/ Occupant(s)
of the vehicle shall be permitted to remove their personal
belongings from the vehicle in question at the time of repossession.
(VI) Inventory: An inventory of the attachments/accessories in the
vehicle shall be prepared by the Receiver and a copy of the same
shall be given to the person from whose possession the vehicle has
been repossessed. The Receiver shall also note down the reading of
the odometer.
(VII) Photographs: At the time of taking the custody of the vehicle,
the Receiver shall take the photographs of the vehicle from various
angles so as to identify the vehicle, its physical condition and
showing the person(s) occupying the vehicle; and identification of
the place where the vehicle has been possessed.
(VIII) Police Assistance: The Receiver shall be at liberty to take the
assistance of the police, if so warranted, while taking over the
possession of the vehicle. The concerned SHO shall consider such
request in accordance with the law.
(IX) Prohibited Actions: The receiver shall not:
(a) Stop the running vehicle on the road to forcibly take out the
driver for the purpose of repossessing the vehicle;
(b) Make any attempt to block the passage of the vehicle to bring it
to a halt to take its possession.;
(c) Take the possession of the vehicle, if the vehicle is occupied by
a woman who is not accompanied by a male; or a child; or an
elderly, infirm or physically/ mentally differently-abled person. (In
such cases, the Receiver shall take over the possession of the
vehicle from the borrower’s residence)
-- 5 of 7 --
Page no. 6 of 7
(d) Cause or let any breach of peace. (In such an eventuality, he
shall not proceed with repossession without the assistance of the
police).
(X) Storage: After taking the vehicle in possession, the Receiver
shall stack the same in safe custody.
(XI) Release of vehicle on payment after repossession: If the
respondent(s), after the vehicle has been repossessed, contacts the
petitioner to make the payment of the entire outstanding amount up-
to-date or such settled amount as they may mutually agree to, the
Receiver shall release the vehicle in question to the respondent(s)
on such terms as agreed including but not limited to supardari
subject to an undertaking by the respondent(s) not to part with the
vehicle or create any third party interest in the same until the entire
amount stands liquidated.
(XII) Report of the Receiver: The Receiver shall submit his report
before this Court within 10 days of taking the custody of the vehicle
along with the photographs, specification, list of inventory etc.
(XIII) The receiver or the bank shall not sell the property without
permission of the court.
(XIV) Receiver’s Liability: Any act or omission of the Receiver, not
warranted by the law, shall make him liable for the consequences in
accordance with the law.
(XV) Obligation of petitioner: The petitioner shall ensure the
service of the petition and all annexed documents etc. upon the
respondent(s) within 48 hours of the re-possession of the vehicle.
9. The receiver shall not repossess the vehicle if the respondent pays
Rs.264715/- 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.
-- 6 of 7 --
Page no. 7 of 7
10.Petitioner is directed to initiate arbitration proceedings against the
respondent within 15 days from today, if not already initiated, in terms
of Section 9 (2) of the Arbitration and Conciliation (Amendment) Act,
2015. Compliance report be filed by the next date of hearing. This order
shall remain in force till the next date. However, in the event of
arbitration not commencing within 15 days, the present order shall stand
vacated.
11.Interim application stands disposed off accordingly.
12.The observations made in this order have been made on a
prima facie
view of the matter. They are tentative in nature and not to be construed
as a final expression of opinion on the merits of the case.
(Ashish Aggarwal)
District Judge-III
North-West District,
Rohini Courts, Delhi
17.08.2026
-- 7 of 7 --