Arb Appln NO. 899 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 20-12-2024 CORAM THE HONOURABLE MR JUSTICE P.B. BALAJI Arb Appln NO. 899 of 2024 Equitas Small Finance Bank Limited 4th Floor, Phase-II, Spencer Plaza, 769, Anna Salai, Chennai Appellant(s) Vs Srinivasan K 4th Floor, Phase-II, Spencer Plaza, 769, Anna Salai, ChennaiS/o.Mr.Krishnamoorthy, 5/8, Kuruku Street, Chakkaramallur, Vellore, Tamil Nadu 632 511. Respondent(s) For Appellant(s): Mr.D.Pradeep Kumar For Respondent(s): ORDER This application has been filed seeking appointment of a Receiver viz., Mr.C.Bhagyaraj, Area Legal Manager VF to seize and take possession of the vehicle which is more fully described in the schedule to the Judges Summons which is lying in the custody of the respondent or respondent's men, agents, servants from the respondent's premises or wherever found with police aid and break open of premises, if necessary. 1/5 https://www.mhc.tn.gov.in/judis Arb Appln NO. 899 of 2024 2. Heard Mr.D.Pradeep Kumar, learned counsel for the applicant. 3.The respondent entered into a loan agreement with the applicant Company dated 29.09.2022 for purchase of the asset, morefully described in the schedule to the Judges Summons. Under the loan agreement, the total loan amount of Rs.8,50,000/- was repayable by the respondent to the applicant in 36 monthly installments at 18% interest per annum, commencing from 05.11.2022 to 05.10.2025. 4.The applicant has expressed its difficulty to repossess the asset on its own. Only under the aforementioned circumstances, this application has been filed under Section 9 of the Arbitration and Conciliation Act, seeking for appointment of a Party Receiver to repossess the asset, which is more fully described in the schedule to the Judges Summons. It is only an Application under Section 9, post award being passed. I am satisfied with the reasons assigned in the affidavit in support of the application for appointment of an Advocate Commissioner. 2/5 https://www.mhc.tn.gov.in/judis Arb Appln NO. 899 of 2024 5.The learned counsel for the applicant further submits that the respondent, having availed the loan, failed to repay the same. He would submit that the hypothecated vehicle is a movable asset and if it is kept in idle condition, it would get damaged and its value also gets deteriorated and hence he would urge this Court to appoint a Party Receiver to seize and handover the vehicle more fully described in the schedule to the Judge's Summons, available at the respondent's premises to the applicant Bank, in order to make the security effective and so that the money in dispute in arbitration is fully secured by way of sale of the vehicle in public auction after following due process of law. 6. Upon considering the facts and circumstances of the case and the submissions made by the learned counsel for the applicant, this Court is inclined to appoint a Party Receiver. Accordingly, this Application is ordered with the following directions: a) Mr.C.Bhagyaraj, Area Legal Managter VF, having office at Equitas Small Finance Bank Limited, 4th Floor, Phase – II, Spencer Plaza, 769, Anna Salai, Chennai – 600 002, is appointed as a Party Receiver to repossess the asset, which is more fully described in the schedule to the Judges Summons from the respondent or wherever it is 3/5 https://www.mhc.tn.gov.in/judis Arb Appln NO. 899 of 2024 available and handover the same to the applicant by way of interim custody. Registry is directed to hand over the order to the learned counsel for the Applicant. b) The Party Receiver is permitted to obtain police aid and break open of the premises in case the seized asset is kept in a locked premises in the presence of the Police, after taking proper inventory; c) If break open of a lock is required, the Party Receiver shall do so in the presence of the police personnel who will counter sign the record evidencing the break open of the lock and to re-lock the premises. d) If the Party Receiver finds any difficulty with the jurisdictional police, he is at liberty to approach Superintendent of Police, who shall provide all necessary assistance to him at the time of seizure of the asset. 7. Notice to the respondent returnable by 24.01.2025. Private Notice is also permitted. 8. Post the matter on 24.01.2025 under the caption 'for reporting compliance'. 20.12.2024 ata 4/5 https://www.mhc.tn.gov.in/judis Arb Appln NO. 899 of 2024 P.B.BALAJI, J. ata Arb.Appln.No.899 of 2024 20.12.2024 5/5 https://www.mhc.tn.gov.in/judis