High Court · 2025

Arb Appln No. 868 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 08-10-2025CORAMTHE HONOURABLE MR JUSTICE N. ANAND VENKATESHArb Appln No. 868 of 2025Tata Capital Limited by its Associate Legal Remedial R.KamalakkannanHaving its office at1st Floor, Centennial Square 6A-Dr Ambedkar Salai, Kodambakkam Chennai 600 024 ApplicantVsKumpatla SatthirajuD No.2 68 Maripodu SakhinetipalliOpp Vinayaka TempleSathyamangalam, East GodavariAndhra Pradesh 533 250 RespondentPRAYERTo pass an order appointing an Advocate Commissioner to seize and deliver the car, Maruti Suzuki India Limited – Ertiga Smart Hybrid ZDI plus bearing Registration No.AP39L1313 fitted with engine no D13A-3476402, Chassis No.MA3BNC42SKB126151 situated at D No 2 68 Maripodu Sakhinetipalli, Opp Vinayaka Temple, East Godavari, Andhra Pradesh 533 250 or wherever it is found more fully described hereunder, with police aid or break open the premises from wherever found and handover the same to the Applicant.For Applicant:Mr.N.K.VananFor Respondent:Mr.M.Ganesamoorthy Advocate Commissioner https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 2025ORDERThis application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 for appointment of an Advocate Commissioner to seize the subject vehicle in the custody of the respondent or wherever found, if necessary, with police protection and by breaking open the premises and deliver the same to the applicant. 2. When this application came up for hearing on 02.07.2025, this Court passed the following order:-“This application has been filed under Section 9 of the Arbitration and Conciliation Act, seeking for appointment of an advocate commissioner to repossess the equipment from the respondent or wherever available. 2. The applicant is a non banking financial institution. They lent money to the respondent under an agreement for loan cum hypothecation dated 24.03.2023. The respondent has committed default in the repayment of the loan as per the said agreement. The applicant has also recalled the loan through their loan recall notice dated 19.09.2024. They have also filed a statement of accounts dated 03.06.2025. As seen from the same, Rs.14,51,943/- is due and payable by the respondent to the applicant. The said amount includes the future installments, penal interest and other incidental charges. However, as on date, the respondent is in arrears of installments, which amounts to Rs.4,26,425/-. 3. Under the agreement for loan cum hypothecation dated 24.03.2023, the applicant is empowered to repossess the equipment from the respondent in case they commit default in the repayment of the loan. The applicant has expressed its difficulties to repossess the equipment on their own. Under those circumstances, they have filed this application, seeking for appointment of an advocate commissioner to https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 2025repossess the equipment. The applicant has also undertaken to initiate arbitration in accordance with clause 13 of the agreement for loan cum hypothecation dated 24.03.2023. 4. This Court, after giving due consideration to the averments contained in the affidavit filed in support of this application and after giving due consideration to the documents filed along with this application, is of the considered view that since the respondent is a defaulter in the repayment of loan, this Court is inclined to appoint an advocate commissioner as prayed for in this application. However, in order to enable the respondent to run the equipment even after repossession by the advocate commissioner, this Court is putting the respondent on terms. According to the applicant, a sum of Rs.4,26,425/- is due and payable by the respondent to the applicant towards arrears of installments i.e., more than four installments have not been paid by the respondent to the applicant till date. 5. For the foregoing reasons, this Court issues the following directions: a) Mr. M. Ganesamoorthy, Advocate having address at No.177, New Additional Law Chamber, High Court Buildings, Chennai - 600 104 (Mob. No.98427 73593) is appointed as the advocate commissioner to re-posses the equipment morefully described in the schedule to the Judges Summons from the respondent from his premises or wherever available; b) The advocate commissioner after re-possessing the equipment, shall handover interim custody of the same to the applicant, who shall keep it in their safe custody; c) The advocate commissioner, immediately after re-possessing the subject equipment, shall intimate the respondent either through Registered Post with Acknowledgment Due (RPAD) or by hand delivery through a written communication, that the arrears of installments works out to Rs.4,26,425/-; d) The respondent on payment of Rs.4,26,425/- to the https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 2025applicant within a period of one week from the date when the subject equipment was re-possessed, is entitled for return of the seized equipment, provided an undertaking is given by the respondent that they shall pay the future installments on the due dates, without any default. On receipt of the sum of Rs.4,26,425/- within the stipulated time as stated supra, the applicant shall redeliver the subject equipment back to the respondent with proper acknowledgment and the advocate commissioner shall also render proper assistance for the same; e) The applicant shall initiate arbitration in accordance with the arbitration agreement contained in the contract within a period of 90 days from today. In case, the applicant fails to initiate arbitration within the stipulated time, the order passed by this Court today shall stand automatically vacated and the re-possessed equipment shall also be redelivered back to the respondent by the applicant unconditionally; f) In case, the advocate commissioner requires Police assistance due to any law and order problem or due to any obstruction caused by the respondent or by any third party, while re-possessing the equipment, the advocate commissioner is at liberty to seek police assistance from the concerned police station and the police department shall grant police protection accordingly. In case, break open of the premises, where the equipment is located, is required, the advocate commissioner shall break open the premises in the presence of the police and take an inventory and thereafter re-posses the equipment; g) The advocate commissioner shall be paid an initial remuneration of Rs.25,000/- and on receipt of the same, the advocate commissioner shall proceed to execute this order. All the boarding, lodging and travelling expenses for the advocate commissioner shall be borne by the applicant. 6. Notice to the respondent, returnable by 06.08.2025. Private Notice is also permitted ” 3. When the matter came up for hearing on 06.08.2025, since the notice https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 2025sent to the respondent was returned with an endorsement 'Addressee left without intimation', this Court permitted the applicant to effect substituted service on the respondent and extended the time for execution of warrant. 4. When the matter was taken up for hearing today, the learned counsel for applicant submitted that the paper publication has been effected. It is brought to the notice of this Court that till date, the Advocate Commissioner is not able to seize the vehicle and the applicant is in the process of finding out the whereabouts of the vehicle. 5. It is clear from the above that the respondent has not chosen to appear before the Court and the whereabouts of the subject vehicle is also not able to be ascertained. Hence the apprehension raised on the side of the applicant that the respondent is trying to secret the vehicle is prima facie established.6. In view of the above, in the place of the Advocate Commissioner, Ms.Raichur Bhavani Krishna, Legal Manager, Mobile No. 89771 10110 is appointed as Receiver for seizing the subject vehicle from the respondent or wherever it is found and by breaking open the premises, if required, with police aid. 7. This application is disposed of in the above terms. https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 202508-10-2025ssToKumpatla SatthirajuD No.2 68 Maripodu SakhinetipalliOpp Vinayaka TempleSathyamangalam, East GodavariAndhra Pradesh 533 250 https://www.mhc.tn.gov.in/judis Arb Appln No. 868 of 2025N.ANAND VENKATESH J.ssArb Appln No. 868 of 2025 08-10-2025