SREI EQUIPMENT FINANCE LTD. vs VALECHA ENGINEERIG LTD. & ANR.

The Court : This is an application under Section 9 of the Arbitration and Conciliation Act, 1996, as amended by Act III of 2015.

From the affidavit of service filed on behalf of the petitioner, it appears that the copy of this application has been served upon the respondent no.1.

However, none appears on behalf of the respondents to oppose this application. Let the supplementary affidavit filed by the petitioner be kept on

record.

The petitioner claims that in terms of an agreement dated November 22, 2015, 2017 between the parties, which contains an arbitration clause, the

respondent no.1 had obtained a loan of Rs.2,67,75,000/- from the petitioner to purchase one asset mentioned in paragraph 2 of the application. The

said asset remains hypothecated with the petitioner. The respondent no. 2 as the guarantor is a party to the said agreement which also contains an

arbitral agreement. The respondents were obliged to repay the loan amount together with the agreed rate of interest and pay other charges to the

petitioner by 34th monthly instalments of Rs.9, 69,750/- each but after making payment for the first 16 instalments and part of the 17th instalment it

has defaulted to make payment of the balance instalments to the petitioner. As on November 24, 2017, Rs.1, 89, 03,663/- remains due and owing by

the respondents and in spite of repeated demands, the respondents have refused to pay their outstanding dues and to hand over possession of the

hypothecated asset to the petitioner. Thus, the petitioner has terminated the said agreement and filed this application seeking for appointment of a

Receiver for taking possession of the said hypothecated asset which is presently lying at Andheri West, Mumbai and other reliefs.

Having considered the materials on record, I find that the petitioner has made out a prima facie case for interim order and the balance of convenience

and inconvenience wholly lies in favour of the petitioner for obtaining an order of appointment of a Receiver as prayed for.

Accordingly, Mr. Prabhakar Chowdhury, Advocate, Bar Library Club, 2nd Floor, is appointed as the Receiver to take actual possession of the said

vehicle more particularly described in paragraph 2 of the application. After taking possession of the said loader, the receiver shall keep the

hypothecated asset at a safe place to be provided by the petitioner until further orders. The petitioner shall pay the initial remuneration of 2000 GMs

to the Receiver. The petitioner shall also bear the travel expenses of the Receiver and shall provide the Receiver with a befitting accommodation at

the relevant place he has to visit to carry out this order. The petitioner shall engage one of its competent officers to accompany the Receiver in the

state of Maharashtra.

The respondents are directed to render all required assistance to the Receiver in order to enable him to take possession of the hypothecated asset.

If necessary, the Receiver will be entitled to approach the jurisdictional Superintendent of Police, who shall render all assistance to the receiver to

carry out this order.

Let this application appear under the same heading two weeks after reopening of Court after summer vacation when the Receiver shall file a report.

Urgent certified website copies of this order be supplied to the parties, if applied for, upon compliance of all requisite formalities.

All parties, the Receiver and the concerned police authorities shall act on a website copy of this order.