Madras High Court
M/S.Shrinithi Capital Private Ltd vs M.Eshwar on 3 July, 2025
Author: Abdul Quddhose
Bench: Abdul Quddhose
Arb Appln No.727 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03-07-2025
CORAM
THE HONOURABLE MR JUSTICE ABDUL QUDDHOSE
Arb. Appln. No.727 of 2025
M/s.Shrinithi Capital Private Ltd.,
Represented by its Chief Manager
Mr.R.Selvam,
at 2nd Floor, 2A Mookambika Complex,
No.4, Lady Desika Road, Mylapore,
Chennai 600 004.
Applicant
Vs
1 M.Eshwar
2 M.Mohan
Respondents
Prayer: Arbitration Application is filed under Order XIV Rule 8 of
O.S.Rules r/w. Section 9 (ii) (b) and (e) of Arbitration and Conciliation Act,
1996, praying to appoint an Advocate Commissioner with direction to seize
the Schedule mentioned Vehicle which is lying under the custody of the
Respondent or his men, agent, Servants or anyone claiming under them
from the premises of 1st Respondent at C202 Raheja Regency, No.147,
Santhome High Road, Raja Annamalaipuram, Chennai 600 028, or at any
other place where the scheduled asset is found, with the police aid and by
breaking open locks if necessary and to take the same into his custody and
sell the same at fair market price.
For Applicant:
Mr.K Sendurpandi
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Arb Appln No.727 of 2025
ORDER
As directed by this Court, the applicant has effected Substituted
Service on the Respondents by effecting paper publication. The paper
publication has been enclosed along with the Affidavit of service. Hence,
the Respondents are set exparte by this Court.
2. The respondents are defaulters in repayment of the loan to the
applicant. The loan agreement dated 29.12.2023 empowers the applicant to
repossess the vehicle from the respondents in case the respondents commit
default in repayment of the loan. As on 22.04.2025, a sum of Rs.39,69,837/-
is due and payable by the respondents to the applicant, as is seen from the
statement of account filed along with this application. As on the date of
filing of the application, the respondents are in arrears of Rs.24,44,448/- as
is seen from the affidavit filed in support of the petition.
3. The applicant has expressed their difficulty to appoint the
Advocate Commissioner on its own. They have also expressed their
willingness to go for arbitration in accordance with arbitration clause
contained in the loan agreement, dated 29.12.2023. The applicant has
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already recalled the loan of the respondents. This Court after giving due
consideration to the contents of the affidavit filed in support of the
application, is of the considered view, a prima facie case has been made out
by the applicant for the appointment of an Advocate Commissioner by this
Court to repossess the vehicle from the respondents or wherever available.
To enable the respondents to take back possession of the vehicle from the
Advocate Commissioner, they must be put on terms for getting back the
vehicle from the applicants after re-possession. In order to strike a balance,
the following order is passed by this Court:
a)Ms.M.Kavitha, Advocate, having office at Women lawyers
Association, high Court Buildings, Chennai 600 104 (Mob.
No.9952793553) is appointed as the Advocate Commissioner to re-posses
the vehicle, morefully described in the schedule to the Judges Summons
from the respondents from their 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 respondents either through Registered
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Post with Acknowledgment Due (RPAD) or by hand delivery through a
written communication that the arrears of installments work out to
Rs.39,69,837/-;
d)The respondent, on payment of Rs.39,69,837/- 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.39,69,837/- within the stipulated time as stated supra, the applicant
shall re-deliver the subject vehicle back to the respondents 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 respondents 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
respondents or by any third party, while re-possessing the vehicle, the
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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;
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.
4. With the aforesaid directions, this application stands disposed of.
5. Post the matter for reporting compliance on 07.08.2025.
03-07-2025
vum
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ABDUL QUDDHOSE,J.,
vum
Arb. Appln. No.727 of 2025
03.07.2025
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