Arb Appln. No.291 of 2022

KRISHNAN RAMASAMY, J.,

This application has been filed seeking for a direction to appoint

an Advocate Commissioner to seize and deliver the vehicle/machine

PILINGRIG, MAIT HR 130 PILING RIG 122TON 63INCH DIA

bearing Serial No.SN130DWNX01288, 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 respondents for purchase of the

commercial vehicle/machine PILINGRIG, MAIT HR 130 PILING RIG

122TON 63INCH DIA bearing Serial No.SN130DWNX01288,

Thereupon, the respondents have entered into Loan Agreement dated

07.12.2021 with the applicant. The brief details in nutshell are as

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follows:

S.No.

Particulars

Remarks

1.

Name of the lender

M/s.IndusInd Bank Ltd

2.

Name of the borrower

Geo Foundations and Structures

Pvt. Ltd.,

3.

Name of the Guarantor

K.N.Madhusudanan Pillai

4.

Date of Loan Agreement

TCC03098E/07.12.2021

5.

Loan Amount

Rs.40,00,000/-

6.

No.of instalments

36 monthly installments

7.

First instalment

07.01.2022

8.

Last instalment

07.11.2024

9.

Sofar instalments paid

Not yet paid

10.

Notice

18.10.2022

11.

Reply to the notice

12.10.2022

12.

Rate of interest

9.52% p.a.

13.

Amount claimed

Rs.49,47,989/-

14.

Arbitration

proceedings

initiated

Applicant undertakes to initiate

arbitral proceedings within 90 days

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

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

committed default. He would submit that the hypothecated vehicle is a

movable asset and if it is kept in idle condition, it would get damaged

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and its value also gets deteriorated and 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, Ms. R.Lavanya, Advocate, 2^nd Floor, Vanguard House,

No.48/148, Moore Street, Chennai-01, Contact No. 8220062062 is

appointed as the Advocate Commissioner to seize the vehicle/machine

PILINGRIG, MAIT HR 130 PILING RIG 122TON 63INCH DIA

bearing Serial No.SN130DWNX01288, lying at the respondents'

premises or wherever found and hand over the same to the custody of

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the applicant. She shall be paid an remuneration of Rs.30,000/-/ (Rupees

Thirty thousand only). The expenses toward her 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 breaking 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 breaking open of the lock and re-locking of the premises.

After seizure, the vehicle is to be handed over to the applicant or to their

representative, after taking inventories. It is made clear that after seizure

of the vehicle, the applicant shall not sell away the vehicle