The court emphasizes the enforcement of the arbitration clause in financial default cases, enabling repossession of secured assets through an appointed Advocate Commissioner.

ORDER

This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 for appointment of an Advocate Commissioner to re-

possess the vehicle from the respondent, wherever it is available.

2. When the application came up for hearing on 27.06.2025, 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. As on date, the respondent is in arrears of

5 installments amounting to Rs.4,40,887/-. As per the statement of account filed along with this application, a sum of Rs.9,86,711/- is due and payable by the respondent, which includes arrears of installments, future installments and other charges payable to the applicant as per the terms and conditions of the Loan Agreement dated 22.03.2022. The applicant has already recalled the loan through its Loan Recall Notice dated 27.03.2024. The Loan Agreement dated 22.03.2022 contains an arbitration clause. 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:

a)Ms.T.Anupriya, Advocate, having office at No.155, Additional Law Chambers, High Court, Chennai - 600 104 (Mob. No.99657 75873) is appointed as the Advocate Commissioner to re-posses the vehicle, morefully described in the schedule to the Judges Summons from the respondent from his premises or wherever available;

b)The Advocate Commissioner, after re-possessing the vehicle, shall handover interim custody of the same to the applicant, who shall keep it in their safe custody;

c)The Advocate Commissioner, immediately after re-

possessing the subject vehicle, shall intimate the respondent either through Registered Post with Acknowledgment Due (RPAD) or by hand delivery through a written communication that the arrears of installments work out to Rs.4,40,887/-;

d)The respondent, on payment of Rs.4,40,887/- to the applicant within a period of three days from the date when the subject vehicle was re-possessed, is entitled for return of the seized vehicle. On receipt of the sum of Rs.4,40,887/- within the stipulated time as stated supra, the applicant shall re- deliver the subject vehicle back to the respondent with proper acknowledgment and the advocate commissioner shall also render proper assistance for the same;

e)The applicant shall initiate arbitration in accordance with the arbitration agreement contained in the contract within a period of 90 days from today.