Appellants must approach the lower court for modification, alteration, or vacation of an ad interim order before filing an appeal under Section 37 of the Arbitration & Conciliation Act.

V.K. SHALI, J.

1. This is an appeal filed by the appellant under Section 37 of the Arbitration & Conciliation Act, 1996 against the orders dated 27.11.2015 and 19.12.2015 passed by the learned Additional District Judge.

2. I have heard the learned counsel for the appellant as well as learned counsel for the respondent. The learned counsel for the appellant has contended that the aforesaid order dated 27.11.2015 by virtue of which the order of repossession of the appellant’s vehicle has been passed by the learned ADJ-01 (South), New Delhi on the ground that there has been default on the part of the appellant borrower in repayment of the loan amount is not factually correct. The learned counsel has stated that the appellant had given instructions to her banker for ECS debit from her husband’s account but for the purpose of the said debit, a requisition is to be received from the respondent bank and in the instant case, the amount of Rs.5,44,444/- which is stated to be outstanding by the appellant is factually incorrect and the appellant at best is prepared to pay two installments for which she is stated to be in default and the order be reviewed.

3. It has also been contended by the learned counsel that the application under Section 9 of the Arbitration and Conciliation Act stands disposed of and therefore, he has been left with no remedy under law except to assail the impugned orders under Section 37 of the Act. This factum has been contested by the learned counsel for the respondent. He has submitted that a perusal of the order dated 27.11.2015 would clearly show that the appellant was given three day’s time to make payment of the entire outstanding loan amount and if so done, the vehicle was to be returned back if it had been repossessed by the respondent. It has been stated that despite the order of repossession having been passed in their favour, the appellant has been evading the execution of the order as a consequence of which the vehicle could not be repossessed and, therefore, it is prayed before this court that the order passed under Section 9 of the Arbitration and Conciliation Act be set aside.

4. I have considered the rival contentions and have also gone through the impugned orders dated 27.11.2015 as well as 19.12.2015. Briefly stated the facts of the case are that the appellant is purported to have take a loan of Rs.40 lacs from the respondent vide loan agreement No. 20141052508 for purchase of a vehicle make AUDI A6. The aforesaid amount of loan was to be repaid by the appellant in 84 equal monthly installments of Rs.46,380/- each but it is alleged by the respondent that the appellant did not maintain the financial discipline and did not pay the installments timely as a consequence of which the entire loan amount was recalled and a notice for recall was given to her on 4.11.2015. After recall, it was stated that the appellant was under an obligation to pay the total amount of Rs.41,91,873.45 within three days of the receipt, failing which appropriate recovery proceedings against the appellant were threatened to be initiated. Since the appellant did not respond to the notice, the respondent filed an application under Section 9 of the Arbitration & Conciliation Act for an ad interim order before the court of ADJ.

5. The learned court passed a reasoned and a balanced order and appointed a Receiver subject to following conditions :-

• An inventory in respect of the attachments in the vehicle shall be made by the Receiver and copy of the same be given to the person from whose possession the vehicle is possessed and the petitioner who shall file the same in court along with the report of the Receiver.

• The condition of vehicle shall be noted and the Receiver shall take photograph of the repossessed vehicle from all sides and shall ensure that vehicle is kept in the same condition as it was repossessed.

• An appropriate receipt shall be given to the person from whose custody the vehicle is taken. The vehicle