1. The applicant in Application No.1798 of 2009 is a Finance Company which has extended financial facilities to the respondents 1 to 3 for the purchase of batching plant with other accessories. A loan agreement was entered into between the applicant and the respondents 1 to 3 on 211. 2007, under which the total agreement amount arrived at was Rs.73,85,820/- payable by the respondents 1 to 3 in 34 monthly instalments commencing from 2. 2008 and ending with 11. 2010 at the rate of Rs.2,17,230/-each as monthly instalments.

2. As per the clauses in the agreement, in the event of default in payment of monthly instalments, the respondents 1 to 3 have to pay compensation charges at 36% p.a. for the belated payment. According to the applicant/financier, the respondents 1 to 3 have defaulted payment and paid only 2 instalments. Under the agreement, hypothecations were made. Since the default in payment continued, notice was issued on 23. 2009. The respondents 1 to 3 are bound to return the assets by way of repossession. The loan agreement also provides for a clause of arbitration under Clause No.23. The applicant intends to enforce the said arbitration clause.

3. By virtue of p