Court affirmed the necessity of asset seizure in loan default cases under Arbitration Act provisions, emphasizing the applicant's rights to recover due amounts.

ORDER

These applications have been filed for appointment of Advocate Commissioner to seize the vehicles from the respondent and to hand it over to the applicant.

2.The applicant filed the earlier applications in A.Nos.509 and 510 of

2025 and an order came to be passed in these applications on 25.03.2025 and the same is extracted hereunder:

These applications have been filed under Section 9 of the Arbitration and Conciliation Act, 1996 , seeking for appointment of an Advocate Commissioner to seize the equipments / machineries morefully described in the schedule to the respective Judges Summons from the respondents or wherever it is available. 2. The applicant is a Non Banking Financial Institution. The applicant and the respondents are one and the same in both these applications. The respondents have availed loan from the applicant under separate Loan cum Hypothecation Agreements, they are dated 25.02.2022 and 22.11.2022 for the purchase of respective equipments / machineries. According to the applicant, the respondents have committed default in re-payment of the loan. 3. According to the applicant, insofar as Arb. A. No.509 of 2025 is concerned, the respondents have paid as on date only 30 installments out of the total 36 installments payable by them. According to the applicant, the respondents have made payments belatedly. The applicant has also recalled the loan granted to the respondents through their loan recall notice dated 24.01.2025. Despite the same the respondents failed to settle the loan account. The applicant has filed statement of account dated 24.01.2025 along with Arb. Appln. No.509 of 2025, which reveals that a sum of Rs.7,88,475/- is due and payable by the respondents to the applicant, which includes future installments, arrears of installments, penal interest and other charges payable as per the contract. As on date, the respondents are in arrears of 6 installments, which works out to Rs.7,88,475/-.

4. According to the applicant, insofar as Arb. A. No.510 of 2025 is concerned, there were two Loans A/c. Nos. viz., PR00041226 and PR00041227 and the details pertaining to the said Loan A/c. Nos. are stated hereunder :-

a) With respect to Loan A/c. No.PR00041226, the respondents have paid as on date only 21 installments out of the total 27 installments payable by them. According to the applicant, the respondents have made payments belatedly. The applicant has also recalled the loan granted to the respondents through their loan recall notice dated 24.01.2025. Despite the same the respondents failed to settle the loan account. The applicant has filed statement of account, dated 24.01.2025 along with Arb. Appln. No.510 of 2025, which reveals that a sum of Rs.6,52,378/- is due and payable by the respondents to the applicant, which includes future installments, arrears of installments, penal interest and other charges payable as per the contract. As on date, the respondents are in arrears of 6 installments, which works out to Rs.6,52,378/-

b) With respect to Loan A/c. No.PR00041227, the respondents have paid only 21 installments out of the total 27 installments payable by them. According to the applicant, the respondents have made payments belatedly. The applicant has also recalled the loan granted to the respondents through their loan recall notice dated 24.01.2025. Despite the same the respondents failed to settle the loan account. The applicant has filed statement of account, dated 24.01.2025 along with Arb. Appln. No.510 of 2025, which reveals that a sum of Rs.3,36,329/- is due and payable by the respondents to the applicant, which includes future installments, arrears of installments, penal interest and other charges payable as per the contract. As on date, the respondents are in arrears of 6 installments, which works out to Rs.3,36,329/-

5. The applicant is empowered to