High Court · 2025

Arb.Appln.No.1161 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 15.10.2025CORAM:THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH Arbitration Application No.1161 of 2025M/s.Cholamandalam Investment and Finance Company LimitedChola Crest, C 54 and 55, Super B-4, Thiru Vi Ka Industrial Estate, Guindy, Chennai-600 032.Represented by its Authorised Signatory ... ApplicantVs.M/s.Dharani Plastic IndustriesRep. by its Prop. Mrs.Ellikanti MamathaNo.250, Manne Guda, Mangalpally,Rangareddy, HyderabadTelangana - 501 510. ...RespondentPrayer: Arbitration Application filed under Order XIV Rule 8 of O.S. Rules read with Section 9(1)(ii)(a)(b)(d) & (e) of the Arbitration Act, 1996, to appoint an Advocate Commissioner to seize and deliver the equipment to the applicant which is morefully described in the schedule to the judges summons which is lying in the custody of respondent or respondent's men, agents, servants from respondent premises or wherever found with police aid and break open of premises, if necessary.1/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1161 of 2025For Applicant: Mr.D.Pradeep KumarO R D E R This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 for appointment of an Advocate Commissioner for seizing the equipment in the custody of the respondent, if necessary, with police protection and by breaking open the premises. 2. When the matter came up for hearing on 21.08.2025, this Court passed the following order:"This application has been filed under Section 9 of the Arbitration and Conciliation Act, seeking for the appointment of an Advocate Commissioner by this Court to re-possess the equipment, morefully described in the schedule to the judges summons from the respondent or wherever available.2.The respondent is a defaulter in re-payment of the loan to the applicant. The respondent had availed loan for the purchase of the equipment. As on date, 1 installment is in arrears, which amounts to Rs.57,662/-. The applicant has already recalled the loan by issuing notice to the respondent. Under the loan agreement, the applicant is empowered to re-possess the equipment from the respondent in case the respondent commits default. The applicant has expressed its difficulty in re-possessing the equipment on their own. Only under the said circumstances, the applicant has filed this application seeking for appointment of an Advocate Commissioner by this Court. In the loan agreement, there exists an arbitration clause. The applicant has expressed its willingness to go for arbitration in accordance with the arbitration clause. 2/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1161 of 20253.Supporting documents have been filed by the applicant in support of this application. Since a prima facie case has been made out by the applicant for appointment of an Advocate Commissioner, this Court is inclined to appoint an Advocate Commissioner as prayed for in this application. To enable the respondent to take back possession of the equipment from the Advocate Commissioner, the respondent must be put on terms for getting back the equipment from the applicant after re-possession. In order to strike a balance, the following order is passed by this Court:a)Ms.M.Saranya, Advocate, having office at Women's Lawyers Association, 1st Floor, High Court Campus, Chennai - 600 104 (Mob. No.78710 87939) is appointed as the Advocate Commissioner to re-posses the equipment, 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 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 work out to Rs.57,662/-;d)The respondent, on payment of Rs.57,662/- to the applicant within a period of three days from the date when the subject equipment was re-possessed, is entitled for return of the seized equipment. On receipt of the sum of Rs.57,662/- within the stipulated time as stated supra, the applicant shall re-deliver 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 3/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1161 of 2025assistance due to any law and order problem or due to any obstruction caused by the respondents 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.Notice to the respondent returnable by 29.09.2025. Private Notice is also permitted."3. Today, when the matter was taken up for hearing, learned counsel for the applicant submitted that notice sent to the sole respondent has been returned with an endorsement "Insufficient Address" and affidavit of service has also been filed. The notice has been sent only to the address shown in the agreement. He further submitted that there is no representation for the respondent either in person or through counsel. Hence, the apprehension raised on the side of the applicant that the respondent is trying to secret the equipment is prima facie established. 4. In view of the above, in the place of Advocate Commissioner, Mr.Sura Rajashekar, Branch Receivables Manager, is appointed as Receiver 4/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1161 of 2025for seizing the subject equipment from the respondent or wherever it is found and by breaking open the premises, if required, with police aid. 5. This application stands disposed of in the above terms. 15.10.2025mkIndex: Yes/NoSpeaking Order/Non-Speaking OrderNeutral Citation Case : Yes/No5/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1161 of 2025N.ANAND VENKATESH, J.mk Arbitration Application No.1161 of 202515.10.20256/6