Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(Mad) 45321

IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J
M/s.Mercedes-Benz Financial Services India Private Limited – Appellant
Versus
M/s. Roar Global Logistics Private Limited – Respondent
Arb. Appln. No.751 of 2025

Advocates:
For the Appellants/Petitioners: Mr.D. Pradeep Kumar
For the Respondents:

Legal authority exists under Section 9 of the Arbitration Act for the appointment of an Advocate Commissioner to repossess property when a prima facie case of default is established.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 9 - Repossession of vehicle - Application filed for the appointment of an Advocate Commissioner to repossess the vehicle from the defaulter - Applicant established a prima facie case with arrears unpaid - Vehicle to be repossessed and returned upon payment of dues. (Paras 2 and 3)

(B) Default - The respondent defaulted in repayment, resulting in the applicant recalling the loan - The court balanced interests by appointing an Advocate Commissioner to recover the vehicle while permitting the respondent to retrieve it upon payment. (Para 3)

Facts of the case:
Application filed by the lender for repossession of a vehicle from a defaulter, with details of loan arrears and terms of the agreement discussed.

Findings of Court:
Prima facie case established for granting the request to appoint an Advocate Commissioner for repossession, which may include police aid if required.

Issues: The primary issue addressed includes the establishment of a prima facie case for vehicle repossession and the balancing of convenience between the parties.

Ratio Decidendi: The court emphasized the importance of a prima facie case for repossession and jurisdiction under Section 9, allowing the respondent an opportunity to repay before repossession actions are taken.

Result: Application allowed. Advocate Commissioner appointed for vehicle repossession.

Table of Content
1. application for repossession under arbitration due to loan default. (Para 1 , 2)

ORDER

This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an Advocate Commissioner by this Court to repossess the vehicle from the respondent or wherever available.

2. The respondent is a defaulter in the repayment of the loan to the applicant. The Loan cum Hypothecation Agreement, dated 20.03.2023 contains an arbitration clause. In case of default, the applicant is empowered to repossess the vehicle from the respondent or wherever available. As on date, only 23 instalments have been paid by the respondent out of 26 instalments payable. The respondent is in arrears of 3 instalments and the same works out to Rs.2,18,814/-. The applicant has already recalled the loan through their loan recall notice, dated 08.05.2025. The statement of account has also been filed along with this application, which discloses that a sum of Rs.42,69,969.15 is due and payable by the respondent, which includes the arrears of instalments, future instalments payable by the respondent, penal interest and other charges as per the terms and conditions of the Loan cum Hypothecation Agreement. The applicant has also expressed its willingness to go for arbitration in accordance with the arbitration clause contained in the contract, which is the subject matter of the dispute between the parties.

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2025 Supreme(Online)(Mad) 45321

IN THE HIGH COURT OF JUDICATURE AT MADRASABDUL QUDDHOSE, JM/s.Mercedes-Benz Financial Services India Private Limited – AppellantVersusM/s. Roar Global Logistics Private Limited – RespondentArb. Appln. No.751 of 2025

Legal authority exists under Section 9 of the Arbitration Act for the appointment of an Advocate Commissioner to repossess property when a prima facie case of default is established.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J
M/s.Mercedes-Benz Financial Services India Private Limited – Appellant
Versus
M/s. Roar Global Logistics Private Limited – Respondent
Arb. Appln. No.751 of 2025