High Court · 2025

Arb.Appln.No.1159 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 15.10.2025CORAM:THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH Arbitration Application No.1159 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.Abdul Haroon PProprietor, M/s.Sara EnterprisesS/o.AbbasPuthiyedathu House, Chulliyode (PO) Anappara Bridge, Chulliyode, Wayanad,Kerala - 673592. ...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 vehicle 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 1/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1159 of 2025and break open of premises, if necessary.For 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 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 25.08.2025, 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 vehicle from the respondent or wherever available.2.The applicant is a Non-banking Financial Institution. They have entered into a Loan Agreement dated 15.11.2021 with the respondent. Under the said loan agreement, the respondent has availed loan from the applicant for the purchase of the vehicle, morefully described in the schedule to the judges summons. According to the applicant, the respondent has committed default in re-payment of the loan. The applicant has recalled the loan granted to the respondent through their loan recall notice dated 12.06.2025. No reply has been received to the same. The agreement dated 15.11.2021 contains an arbitration clause. The applicant has already initiated arbitration in accordance with the arbitration clause and the arbitration is pending.3.According to them, the respondent has paid only 39 2/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1159 of 2025installments out of the total 61 installments payable by them. As on date, they are in arrears of 5 installments. The arrears of installments alone work out to a total sum of Rs.4,93,025/-. The applicant has also filed statement of account dated 02.08.2025 along with this application, which reveals that a sum of Rs.21,13,357.14 is due and payable by the respondent to the applicant. The applicant is empowered to repossess the vehicle from the respondent, as per the terms of the loan agreements, in case, the respondent commits default in repayment of the loans. The applicant claims that they are having difficulties in re-possessing the vehicle on their own. Only under those circumstances, they have filed this application seeking for the appointment of an Advocate Commissioner to re-possess the vehicle from the respondent or wherever available. 4.This Court is of the considered view that a prima facie case has been made out by the applicant for appointment of an Advocate Commissioner. Once the vehicle is re-possessed by the Advocate Commissioner, to enable the respondent to use the vehicle once again, they must be put on terms for getting back the vehicle from the applicant after re-possession. In order to strike a balance, the following order is passed by this Court:a)Mr.D.Anandan, Advocate, having office at No.1, West Cemetry Road, Old Washermenpet, Chennai - 600 021 (Mob. No.81244 63625) 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 hand delivery through a written communication that the arrears of installments works out to Rs.4,93,025/-;d)The respondent, on payment of Rs.4,93,025/- 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. On receipt of the sum of Rs.4,93,025/- within the stipulated time as stated supra, the applicant shall re-3/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1159 of 2025deliver the subject vehicle back to the respondent with proper acknowledgment and the Advocate Commissioner shall also render proper assistance for the same;e)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 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, 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 vehicle;f)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 06.10.2025. 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 served and affidavit of service has also been filed. However, 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 vehicle is prima facie established. 4. In view of the above, in the place of the Advocate Commissioner, Ms.Arya, Legal Executive, is appointed as Receiver for seizing the subject vehicle from the respondent or wherever it is found and by breaking open 4/6 https://www.mhc.tn.gov.in/judis Arb.Appln.No.1159 of 2025the 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.1159 of 2025N.ANAND VENKATESH, J.mk Arbitration Application No.1159 of 202515.10.20256/6