Arb Appln.No.33 of 2023

Arb Appln.No.33 of 2023

KRISHNAN RAMASAMY, J.,

This application has been filed seeking for a direction to appoint

an Advocate Commissioner to seize and deliver the vehicle ASHOK

LEYLAND bearing Chassis No.MBIPBEYCOBECG7186, Engine

No.BCEZ402059 bearing Registration No.TN25 AB 8980 to the

custody of the applicant, available at the respondent premises or

wherever found and with whomsoever it is found and permit the

Advocate Commissioner to obtain police Aid and to break open the

premises.

2.

The learned counsel appearing for the applicant would

submit that the applicant provided loan to the respondent for purchase of

the

vehicle

ASHOK

LEYLAND

bearing

Chassis

No.MBIPBEYCOBECG7186, Engine No.BCEZ402059 bearing

Registration No.TN25 AB 8980. Thereupon, the respondent has entered

into Loan Agreement dated 31.10.2020 with the applicant. The brief

details in nutshell are as follows:

1/6

https://www.mhc.tn.gov.in/judis

Arb Appln.No.33 of 2023

S.No.

Particulars

Remarks

1.

Name of the lender

The applicant

2.

Name of the borrower

The Chairman, Kalaimahal

College of arts and science

3.

Name of the Guarantor

G.Jayaprakasam

4.

Date of Loan Agreement

31.10.2020

5.

Loan Amount

Rs.10,50,000/-

6.

No.of installments

60 monthly installments

7.

First installment

27.02.2021

8.

Last installment

18.09.2025

9.

Default EMIs as on 24.01.2023

10 installments

10.

Notice

20.10.2022

22.12.2022

11.

Reply to the notice

No

12.

Rate of interest

8.75% p.a.

13.

Amount claimed

Rs.2,53,729/-

14.

Arbitration proceedings initiated Applicant undertakes to initiate

arbitral proceedings within a

period of 90 days.

3. The learned counsel for the applicant further submits that the

respondent, having availed the loan, failed to repay the same and

defaulted 10 instalments as on 24.01.2023. 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

2/6

https://www.mhc.tn.gov.in/judis

Arb Appln.No.33 of 2023

hence he would urge this Court to appoint an Advocate Commissioner to

seize and handover the vehicle to the applicant bank morefully described

in the schedule to the Judges summons available at the respondents

premises, in order to make the security effective and 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.

4. Upon considering the facts and circumstances of the case and

the submissions made by the learned counsel for the applicant, this

Court is satisfied that the applicant has made out a case in its favour and

accordingly, Mr.S.Suresh, Advocate, Plot No.45, Neethi Nagar, Behind

High Court, Y.Othakadai, Madurai-625107, Enrollment No.942/2001

and Contact No.9443269236

is appointed as the Advocate

Commissioner to seize the vehicle, viz., ASHOK LEYLAND bearing

Chassis No.MBIPBEYCOBECG7186, Engine No.BCEZ402059 bearing

Registration No.TN25 AB 8980, lying at the respondents' premises or

wherever found and hand over the same to the custody of the applicant.

3/6

https://www.mhc.tn.gov.in/judis

Arb Appln.No.33 of 2023

He shall be paid his initial remuneration of Rs.15,000/- (Rupees Fifteen

Thousand only) in advance. The expenses toward his travel and stay

shall be defrayed by the applicant.

5. It is hereby made clear that if police help is required, the

Advocate Commissioner shall make a request to the local police station

within whose jurisdiction the vehicle is found and on such request being

made, the Station House Officer shall send the Police Personnel along

with the Advocate Commissioner to seize the vehicle. If break open of a

lock is required, the Advocate Commissioner 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. After se