SREI EQUIPMENT FINANCE LTD @APPELLANT@Hash SAI VENKAT ENGINEERS & CONSTRUCTORS & ORS

The Court : This is an application under Section 9 of the Arbitration and Conciliation Act, 1996, as amended by Act 3 of 2016. From the affidavit

of service filed on behalf of the petitioner, it appears that all the three respondents have refused to receive the copies of this application

sought to be served upon them personally. However, none appears on behalf of any of the respondents to oppose this application.

Accordingly, this application is taken up for hearing in the absence of the respondents. It is the case of the petitioner that in terms of the

agreement dated December 31, 2016 entered into between the parties (hereinafter referred to as ‘the said agreement’), the respondent

No. 1 obtained financial assistance of Rs.1,64,63,500/- from the petitioner for asset, described in paragraph 2 of the application. The said asset

remains hypothecated in favour of the petitioner. The respondent Nos. 2 and 3, as the guarantors, are also parties to the said agreement,

which also contains an arbitration agreement.

Under the said agreement the respondent no.1 is obliged to repay the loan amount, together with agreed rate of interest and other charges by

way of 32 monthly instalments of Rs.6,41,500/-each. However, after paying the first 12 instalments and part of the 13th instalment, the

respondent No. 1 has failed to pay the balance instalments.

According to the petitioner, as on the date of filing of this application, Rs.1,44,53,529/- remains due and owing by the respondents to the

petitioner but in spite of repeated requests they have refused to pay the said amount. Therefore, the petitioner has terminated the said

agreement and filed this application to enforce its right to take possession of the hypothecated asset through appointment of a Receiver.

Having considered the materials on record, I find that the petitioner has made out a prima facie case for obtaining an ad interim order for

appointment of Receiver to take possession of the hypothecated asset, described in paragraph 2 of the application, presently lying in and

around Vijayawada in the State of Andhra Pradesh.

Accordingly, Mr. Rabindranath Basak, Advocate, Bar Library Club (1st Floor), is appointed the Receiver to take actual physical possession of the

hypothecated asset, described in paragraph 2 of the application from the concerned respondents lying in and around Vijayawada in the State

of Andhra Pradesh. After taking possession of the hypothecated asset, the Receiver shall keep the same, in his custody, at a safe place to be

provided by the petitioner.

The Receiver shall be paid an initial remuneration of 2000 GMs by the petitioner. The petitioner shall also bear the travelling expenses of the

Receiver, including air fare and shall provide him with a befitting commodation at the relevant places in the State of Andhra Pradesh. Needless

to mention that a competent officer of the petitioner shall all along accompany the Receiver in the State of Andhra Pradesh.

If necessary, the Receiver shall approach the Superintendent of Police of the concerned District of Andhra Pradesh for obtaining police

assistance to implement this order. If the petitioner deposits the requisite fees with the concerned authorities, the Superintendent of Police

of the concerned District of Andhra Pradesh shall render necessary police assistance to the Receiver to take actual physical possession of the

hypothecated asset from the concerned respondent.

Let this application appear The Receiver shall file hearing. after five weeks from date. his report on the next date of Urgent certified website

copy of this order, if applied for, be made available to the parties subject to compliance with the requisite formalities.

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