A lender can initiate repossession of a vehicle through an Advocate Commissioner under the Arbitration and Conciliation Act if a default in loan repayment occurs.

PRAYER To appoint an Advocate Commissioner to take custody of the Vehicle being MARUTI CAT CMARUTI BALENO bearing Chassis No.MBHEWB22SLM598287 fitted with Engine No.K12MP4135204 and Reg.No.AO39HT7970 from the Respondent or wherever it is found and deliver it to the applicant with liberty to sell and to premit the Advocate Commissioner to obtain police aid and to break open the premises within which the said vehicle is lying and pass orders.

For Applicant(s): M/s.Uma Vijayan M.R.

For Mr. Vasanth Kumar, Respondent(s): Advocate Commissioner Court Notice Await Services

ORDER

When the application came up for hearing on 24.06.2025, this Court passed the following order:-

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

2.The respondent is a defaulter in re-payment of the loan to the applicant. The respondent had availed loan for the purchase of vehicle. The respondent has paid only 27 installments out of 60 instalments, which are due and payable to the applicant as on date. As on date, 6 installments are in arrears, which amounts to Rs.1,45,072/-. The applicant has already recalled the loan by issuing notice to the respondent. Under the loan agreement, the applicant is empowered to re-possess the vehicle from the respondent in case the respondent commits default. The applicant has expressed its difficulty in re-possessing the vehicle on their own. Only under the said circumstances, the applicant has filed this application seeking for appointment of an Advocate Commissioner by this Court. In the loan agreement, there exists an arbitration clause. The applicant has expressed its willingness to go for arbitration in accordance with the arbitration clause.

3.Supporting documents have been filed by the applicant in support of this application. Since a prima facie case has been made out by the applicant for appointment of an Advocate Commissioner, this Court is inclined to appoint an Advocate Commissioner as prayed for in this application. To enable the respondent to take back possession of the vehicle from the Advocate Commissioner, they must be put on terms for getting back the vehicle from the applicant after re-possession. In order to strike a balance, the following order is passed by this Court: