EI EQUIPMENT FINANCE LTD. vs KRISHNAN & ANR.

The Court : This is an application under section 9 of the Arbitration and Conciliation Act, 1996, as amended by Act 3 of 2016 (in short “the Act of

1996â€​) at the instance of the financier.

On January 25, 2018, this Court appointed a member of the Bar as the Receiver to take possession of the hypothecated assets from the respondents.

The Receiver is present in court and submits that inasmuch as the hypothecated assets could not be located he was unable to take possession of the

same.

The fact that the Receiver was unable to take possession of the hypothecated assets as directed by this Court on January 25, 2018 is not disputed by

the petitioner.

It is, however, submitted on behalf of the petitioner that the disputes between the parties have already been referred, for adjudication, to an arbitrator

appointed as per the arbitral agreement between the parties.

Since the Receiver has not been able to take possession of the hypothecated assets from the respondent and the disputes between the parties have

already been referred to arbitration, I do not find any reason to keep this application pending.

Accordingly, there is no scope for passing any further direction in this application.

The Receiver appointed on January 25, 2018 stands discharged.

This order shall not stand in the way of the petitioner approaching the arbitrator for seeking appropriate relief under section 17 of the Act of 1996.

With the above direction, AP No.1126 of 2017 stands disposed of without any order as to costs.