A.No.302 of 2022

Arb Appln. No.302 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 morefully

described in the schedule to the Judges summons to the applicant.

2.The learned counsel appearing for the applicant would submit

that the applicant provided loan to the respondents for purchase of the

commercial generator/machinery, namely, GENSETS, KIRLOSKAR

DIESEL GENSET 160KVA, bearing Chassis No.LCS3H19D9738 and

bearing Engine No.6H84221920036. Thereupon, the respondents have

entered into Loan Agreement dated 27.05.2019 with the applicant. The

brief details in nutshell are as follows:

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A.No.302 of 2022

S.No.

Particulars

Remarks

1.

Name of the lender

The applicant

2.

Name of the borrower

The first respondent

3.

Name of the Co-borrower

The second respondent

4.

Date of Loan Agreement

27.05.2019

5.

Loan Amount

Rs.11,01,516.00

6.

No.of instalments

45 monthly installments

7.

First instalment

21.06.2019

8.

Last instalment

21.01.2023

9.

Sofar instalments paid

29^th instalments

10.

Notice sent

yes

11.

Reply to the notice

--

12.

Rate of interest

13%

13.

Amount claimed

Rs.1,70,225/- as on 22.11.2022

14.

Arbitration

proceedings

initiated

Applicant undertakes to initiate

arbitral proceedings against the

respondents

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

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

committed default from 30^th instalment onwards. 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

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A.No.302 of 2022

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.P.Murugesan,

Advocate, Enrollment No.MS

2178/2006, 85, Law Chambers, High Court Buildings, Madurai-

625023 and Contact No.9442308463 is appointed as the Advocate

Commissioner to seize the vehicle, viz., GENSETS, KIRLOSKAR

DIESEL GENSET 160KVA, bearing Chassis No.LCS3H19D9738 and

bearing Engine No.6H84221920036, lying at the respondents' premises

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

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A.No.302 of 2022

applicant. He shall be paid in advance his initial remuneration of

Rs.10,000/- (Rupees Ten Thousand only). 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 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 without

permission of this Court.

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