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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
CFS Netralaya Private Limited - Appellant
Versus
Roop - Respondent
O.M.P.(I) (COMM.) 331 of 2021 & I.A. 12867 of 2021
Decided On : 01-10-2021




The court emphasized the importance of cooperative compliance in executing the role of a Local Commissioner for inventorying assets under Section 9 of the Arbitration and Conciliation Act, ensuring both parties adhere to the terms of property handover.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 9 - Local Commissioner appointment - Petition for appointment of Local Commissioner for inventory of assets at disputed premises granted with conditions. Respondent conceded to the majority of petitioner's requests regarding property handover and inspection. However, conditions applied regarding medical records and restoration of premises. (Paras 1-6)

(B) Local Commissioner’s role - The Local Commissioner is to list and evaluate equipment and various assets belonging to the petitioner, assuring a cooperative approach from both parties during the process. (Para 6)

(C) Police assistance - Police assistance granted if required and to be documented. (Paras 2(iii) and 6)

Facts of the case:
Dispute arises from assets claimed by CFS Netralaya Private Limited at premises utilized by it but allegedly obstructed from inspection and removal by respondents. The petition follows previous orders allowing for inspection, which were impeded.

Findings of Court:
The court appointed a Local Commissioner to inspect premises, inventory assets, and directed the handover of admitted property from the respondents to the petitioner while ensuring that the property is restored post-removal of specific medical equipment.

Issues: Main issues included the ability of the Local Commissioner to execute the inspection effectively despite potential opposition by respondents, and the management of medical records and equipment's removal process.

Ratio Decidendi: The court emphasized the necessity for collaborative execution of the appointment for it to be effective, reinforcing the petitioner's ownership rights while also ensuring parties would maintain operational readiness for future necessary litigation.

Result: Petition disposed of with specific directions as outlined.

Table of Content
1. petition for appointment of local commissioner (Para 1 , 1)
2. background on previous court orders and petition context (Para 2 , 3)
3. responses and agreements from parties (Para 4 , 5)
4. court's directions for execution of the order (Para 6)
5. disposal of the petition and order issuance (Para 7 , 8)

ORDER (ORAL)

1. The prayer clause in this petition, under Section 9 of the Arbitration & Conciliation Act, 1996 ("the 1996 Act"), reads thus:

"In the above noted facts and circumstances, it is most humblyprayed before, this Hon'ble Court may be pleased to:-

a) Appoint a Local Commissioner to inspect the entire Demised Premises bearing no. 334, E.K. Road, Meerut for preparing a list of all assets, equipment, fixtures, fittings, belongings, medical records, etc. of the Petitioner No. l, including the list of assets mentioned in Annexure - A to the Petition which are at the Demised Premises but have not been handed over to the Petitioner No. l till date; and

b) Pass appropriate orders directing the State Police to provide adequate assistance to the Local Commissioner for ensuring inspection of the entire Demised Premises, in the event of any hindrance/obstruction being caused by the Respondents in carrying out the said inspection; and

c) Pass an ad-interim ex-parte order directing the Respondents to immediately hand over all the assets, equipment, fixtures, fittings, belongings, patient medical records and other properties of the Petitioner No. 1 at the Demised Premises, including all the assets, equipment, fixtures, fittings, belongings, etc. as stated in Annexure - A to the present petition; and

d) Permit the Petitioners to remove the Femtosecond Laser Cataract machine by temporarily removing hinges of doors, dismantling of the grills and removing front facade glass portion of the Demised Premises as may be required for doing the needful, with directions as the Petitioner would refix the same at its own cost and expense, immediately on the removal of the said machine; and

e) Pass an order for cost of this Petition in accordance with Section 31A of the Arbitration and Conciliation Act, 1996; And

f) Permit the Petitioner No. I to show to the Local Commissioner the proof of ownership of the assets, equipment, fixtures, fittings, belongings, etc. of the Petitioner No. I which are the Demised Premises; and

g) Pass any other order/orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case."

2. This petition is actually a fallout of an earlier order which was passed by a coordinate Bench of this Court on 9th July, 2021, in OMP (I) (COMM) 127/2021. On the said date, in a similar Section 9 petition, learned Counsel for the petitioners had agreed to withdraw the petition with liberty to urge all issues in controversy before the arbitral tribunal, as and when constituted. However, the Court acceded to the request of the petitioner, for appointment of a Local Commissioner to visit the premises at Roop Netralaya, 334, E.K. Road, Meerut, (hereinafter "the premises in dispute"), and inventorise the goods contained therein. Paras 5,6,8 of the said order read thus:

"5. He further requests that a Local Commissioner be appointed to visit the premises, Roop Netralaya, 334, E.K. Road, Meerut, and make an inventory of the assets belonging to the CFS Netralaya Private Limited in the presence of the representatives of the parties. He prays that the Local Commissioner shall also note whether such machines and other equipments are in working order. The learned counsel appearing for the respondents has no objection to the Local Commissioner being appointed for the aforesaid purposes.

6. In view of the above, Mr. Ankit Banati, Advocate (Mobile No. 9811428913) is appointed as the Local Commissioner to visit the premises in question (Roop Netralaya, 334, E.K. Road, Meerut) after informing the learned counsel for the parties. He shall make an inventory of all the assets which admittedly belong to

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