High Court · 2025

Arb Appln No. 942 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 28-10-2025CORAMTHE HONOURABLE MR JUSTICE N. ANAND VENKATESHArb Appln No. 942 of 20251. Axis Bank LtdRep.by its Deputy manager Mr.Selvaraj,No. 31, 2nd Floor, South Mada Street, Mylapore, ChennaiApplicant(s)Vs1. Madur Gas AgencyShop No.4 2 157 Block No.2 Shop N.4 2 157 Block No.2 K V Rangareddy, Telangana 501 141 India.Respondent(s)PRAYERTo appoint an Advocate Commissioner to take custody of the vehicle bearing ASHOK LEYLAND CABIN CHASSISGA1920 bearing Chassis No.MB1A9CHD6MPCN8471 fitted with Engine No.MDPZ114800 and Registered as AP39UB2002 from the Respondent or wherever it is found and deliver it to the applicant with liberty to sell and to permit the Advocate Commissioner to obtain Police aid and to break open the premises within which the https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025said vehicle is lying and pass orders. For Applicant(s):M/s.Uma Vijayan M.R.For Respondent(s):M. Danabal, Advocate CommissionerCourt Notice Await ServicesORDERThis application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 for appointment of an Advocate Commissioner for seizing the vehicle in the custody of the respondent, if necessary, with police protection and by breaking open the premises. 2. When this application came up for hearing on 17.07.2025, 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 vehicle from the respondent or wherever available. 2. The applicant is a scheduled bank. They lent money to the respondent under an agreement for loan dated 22.09.2021. The respondent has committed default in the repayment of the loan as https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025per the said agreement. The applicant has also recalled the loan through their loan recall notice dated 24.03.2025. They have also filed a statement of accounts dated 25.02.2025. As seen from the same, Rs.2,43,672.18 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.4,82,310/-.3. Under the agreement for loan dated 22.09.2021, the applicant is empowered to repossess the vehicle from the respondent in case they commit default in the repayment of the loan. The applicant has expressed its difficulties to repossess the vehicle on their own. Under those circumstances, they have filed this application, seeking for appointment of an advocate commissioner to repossess the vehicle. The applicant has also undertaken to initiate arbitration in accordance with clause 45 of the agreement for loan dated 22.09.2021.4. 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 https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025since 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 vehicle even after repossession by the advocate commissioner, this Court is putting the respondent on terms. According to the applicant, a sum of Rs.4,82,310/- is due and payable by the respondent to the applicant towards arrears of installments i.e., 1 installment has not been paid by the respondent to the applicant till date. 5. For the foregoing reasons, this Court issues the following directions:a) M. Danabal, Advocate having address at MHAA, 1st Floor, High Court Building, Chennai - 600 104 (Mob. No.93812 02464) is appointed as the advocate commissioner to re-posses the vehicle morefully described in the schedule to the Judges Summons from the respondent's premises or wherever available;b) The advocate commissioner after re-possessing the vehicle, 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 vehicle, shall intimate the respondent either through Registered Post with Acknowledgment Due (RPAD) or by https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025hand delivery through a written communication, that the arrears of installments works out to Rs.4,82,310/-;d) The respondent on payment of Rs.4,82,310/- to the applicant within a period of three days from the date when the subject vehicle was re-possessed, is entitled for return of the seized vehicle, provided an undertaking is given by the respondent that the respondent shall pay the future installments on the due dates, without any default. On receipt of the sum of Rs.4,82,310/- within the stipulated time as stated supra, the applicant shall redeliver the subject vehicle 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 vehicle 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 https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025re-possessing the vehicle, 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 vehicle is located, if required, the advocate commissioner shall break open the premises in the presence of the police and take an inventory and thereafter re-posses the vehicle;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 21.08.2025. Private Notice is also permitted.3. The private notice sent to the respondent has been served and the affidavit of service has also been filed. There is no representation either in person or through counsel. Hence, the apprehension raised on the side of the applicant that the respondent is trying to secret the construction equipment is prima facie established. https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 20254. In view of the above, in the place of the Advocate Commissioner, Mr.Vishwajit Bagayatkar, Manager, is appointed as the Court receiver and the Court receiver is permitted to seize the vehicle from the respondent or wherever it is found and by breaking open the premises, if required with police assistance.5. This application stands disposed of in the above terms.28-10-2025rkaIndex:Yes/NoSpeaking/Non-speaking orderInternet:YesNeutral Citation:Yes/NoTo1.Madur Gas AgencyShop No.4 2 157 Block No.2 Shop N.4 2 157 Block No.2 K V Rangareddy, Telangana 501 141 India. https://www.mhc.tn.gov.in/judis Arb Appln No. 942 of 2025N.ANAND VENKATESH J.rkaArb Appln No. 942 of 202528-10-2025