L & T Finance Limited v. M/s.Krishanakant Agencies & Anr.
Case at a glance
Outcome
Disposed of
In the circumstances, the above petitions are disposed of by
Provisions considered
- Code of Civil Procedure, 1908 O. XL r. 1
Key paragraphs
- Para 33. In the circumstances, the above petitions are disposed of by the following order :- (i) Pending the hearing and final disposal of the arbitration proceedings, and for a period of twelve weeks thereafter the Court Receiver, High Court, Bombay is appointed as a Receiver…
Judgment
L & T Finance Limited V/s. M/s.Shri Baba Construction Co. & Ors. ...Respondents ....Petitioner ARBITRATION PETITION NO. 894 OF 2011 WITH 2 arbp887-11g L & T Finance Limited V/s. M/s.Varsha Construction & Anr. ..Respondents ..Petitioner ARBITRATION PETITION NO.895 OF 2011 WITH L & T Finance Limited V/s. Ramesh R. Reddy & Anr. ....Petitioner ...Respondents WITH ARBITRATION PETITION NO.896 OF 2011 L & T Finance Limited V/s. Mrs. Mandakini Shivaji Kale & Anr. ..Respondents ..Petitioner ARBITRATION PETITION NO.897 OF 2011 WITH L & T Finance Limited V/s. Mr.Nandkishor Pralhad Awati & Anr. ..Petitioner ..Respondents ARBITRATION PETITION (L) NO. 1076 OF 2011 WITH L & T Finance Limited V/s. Kamlakar Janardhan Deshmukh ..Petitioner ..Respondents ARBITRATION PETITION (L) NO. 1099 OF 2011 WITH L & T Finance Limited V/s. Ramesh Ranga Reddy & Anr. ..Respondents ..Petitioner Ms.Shakuntala Joshi i/b S.I. Joshi & Co. for the Petitioners. None for the Respondents. 3 arbp887-11g CORAM : S.J. VAZIFDAR, J. DATE : 14TH NOVEMBER, 2011. P.C. :-
These are petitions under section 9 of the Arbitration & Conciliation Act, 1996.
According to the petitioners, the respondents are bound and liable to pay amounts under the loan/hypothecation agreement entered into between the petitioners and respondent No.1. Respondent No.2 in some of the petitions are the guarantors. According to the petitioners, the amounts under the said agreement/s have not been repaid. The petitioners dues are secured by the hypothecation of the vehicles. As a result thereof, the matter is to be decided in arbitration.
Operative part
In the circumstances, the above petitions are disposed of by the following order :-
(i) Pending the hearing and final disposal of the arbitration proceedings, and for a period of twelve weeks thereafter the Court Receiver, High Court, Bombay is appointed as a Receiver of the hypothecated vehicles referred to in the agreements and prayer clause (a) of the petition, with all powers under Order XL Rule 1 of the Code of Civil Procedure, 1908.
(ii) In the event of the petitioner itself indicating the location of the said vehicles, the Court Receiver shall take possession thereof, without notice to the respondents. 4 arbp887-11g (iii) In the event of the respondents not handing over possession to the Court Receiver, as directed by him, the Court Receiver shall take forcible possession without further reference to this Court. For this purpose, the Court Receiver shall be entitled to take the assistance of the police.
The Court Receiver shall also enter into the agency agreement at the earliest. (iv) Upon taking possession of the said vehicles, the Court Receiver shall, in the first instance, appoint the Respondents as his agents in respect of the said vehicles on the usual terms and conditions including as to security and royalty but only after the agency agreement is executed by the concerned respondents. (v) In the event of the Respondents refusing to accept the agency of the Court Receiver, the Court Receiver shall file a report for seeking directions including for appointing an agent in respect thereof or for the sale of the said hypothecated vehicles. (vi) Liberty to apply for further reliefs, including in respect of those reliefs which have not been granted by this Court, after the Court Receiver takes possession and in the event of the security being inadequate to meet the alleged claims of the Petitioner.
All rights and contentions in that regard are kept open. (vii) Till the Court Receiver takes possession of the vehicles, the respondents, either by themselves or through their servants or agents are restrained in any manner from transferring, disposing of, alienating, encumbering or creating any third party rights in respect of the said 5 arbp887-11g hypothecated vehicles. (viii) The Respondents are ordered and directed to disclose the location of the vehicles within two weeks from the date of service of the copy of this order. (ix) The undertaking to file the affidavit of service within two weeks from today, if not already filed, is accepted. It is clarified that the Court Receiver shall take physical possession of the vehicles upon the petitioner identifying the same in the event of the Court Receiver being unable to locate the respondents despite efforts.
Questions this judgment answers
What did the Court decide in this case?
The Court recorded the following disposition: In the circumstances, the above petitions are disposed of by
Which statutory provisions did this judgment involve?
Code of Civil Procedure, 1908 — O. XL r. 1.
Which court decided this case, and when?
Bombay High Court, on 14 Nov 2011. The bench was S VAZIFDAR.
Precedent status how later indexed judgments have treated this case
No known negative treatment found in the Courts & Cases corpus.
This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.