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.723 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03-07-2025
CORAM
THE HONOURABLE MR JUSTICE ABDUL QUDDHOSE
Arb. Appln. No.723 of 2025
1 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.
2 M/s.Hinduja Leyland Finance,
Represented by its Area manager:Mr.Ashok
No.1, Sardar Patel Road, Guindy,
Chennai 600 032.
Applicants
Vs
1 M.Eshwar
2 M/s.Karthik Travels Private Limited,
No.18/43, First Floor Corporation Complex,
3rd Cross Street, RA Puram,
Chennai 600 028.
3 Aparajitha B
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
Respondents or his men, agent, Servants or anyone claiming under them
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from the premises of 1st Respondent at No.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 Applicants:
Mr.K Sendurpandi
ORDER
As directed by this Court, the applicants have effected Substituted
Service on the Respondents 1 and 3 by effecting paper publication. The
paper publication has been enclosed along with the Affidavit of service.
Hence, the Respondents 1 and 3 were set exparte by this Court. The 2nd
Respondent has already been set exparte by this Court.
2. The respondents are defaulters in repayment of the loan to the
applicants. The loan agreement dated 01.04.2024 empowers the applicants
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.13,29,985/- is due and payable by the respondents to the applicants, as is
seen from the statement of account filed along with this application. As on
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the date of filing of the application, the respondents are in arrears of
Rs.6,18,756/- as is seen from the affidavit filed in support of the petition.
3. The applicants have 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 01.04.2024. The applicants have
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 applicants 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.S.Revathi, Advocate, having office at No.75, Law Building,
High Court, Chennai – 600 001 (Mob. No.9962609578) is appointed as the
Advocate Commissioner to re-posses the vehicle, morefully described in the
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Arb Appln No.723 of 2025schedule to the Judges Summons from the respondents from his premises or
wherever available;
b)The Advocate Commissioner, after re-possessing the vehicle, shall
handover interim custody of the same to the applicants, 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
Post with Acknowledgment Due (RPAD) or by hand delivery through a
written communication that the arrears of installments work out to
Rs.13,29,985/-;
d)The respondents, on payment of Rs.13,29,985/- to the applicants
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.13,29,985/- within the stipulated time as stated supra, the applicants
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;
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e)The applicants shall initiate arbitration in accordance with the
arbitration agreement contained in the contract within a period of 90 days
from today. In case, the applicants fail 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 applicants 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
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;
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ABDUL QUDDHOSE,J.,
vum
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 applicants.
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
Arb. Appln. No.723 of 2025
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