BEFORE SHRI SOURAV BAJAJ (ADVOCATE)
SOLI ARBITRATOR, SAKET, DELHI
Ref. No. SB/CARS24 lcV2024l3l3l
IN THE MATTER OF:
CARS24 FINANCIAL SERVICES PVT. ......CLAIMANT
LTD.
Versus
ANKI'I ARORA ....RESPONDENT/s
ORDER
Dated:26.10.2024
Vide this order I shall dispose-off the pending application under Section l7 of the Arbitration
and Conciliation Act, 1996 filed by the Claimant, seeking permission to repossess and sell the
vehicle.
I have heard the Ld. Counsel for the claimant on the application filed under Section l7 ofThe
Arbitration and Conciliation Act, 1996, seeking permission to repossess and sell the
hypothecated vehicle (in favour of ICICI Bank Limited, hercinaftet rcfcned to as "Lender').
As per the averments made in the claim petition, the Respondent/s approached the claimant for
tacilitating a loan from third party financer, i.e. ICICI Bank Limited, for the purchase of vehicle
make HYUNDAI I20 bearing registration no. DL3CBP4282, under the Loan and Collateral
Management Agreement No 1400358806 along with Declaration cum Undertaking for the
purchase of the said vehicle; and the request of the Respondent was duly supported and
facilitated by the claimant and accordingly, a loan of Rs. 241343/- was sanctioned vide the ICICI
Loan Agreement no. PUJAI00044295168, dated 26,08.2021. As per the terms stipulated in the
said agreement, the respondent(s) agreed to repay the said loan amount, along with interest
thereupon in 48 monthly installments ofRs. 6728l- each.
That the counsel for the complainant further stated that due to persistent default as committed by
the respondent, the said loan facility was recalled by the lender and accordingly. as per the
service provider agreement, the claimant had paid an amount of Rs 240670/- towards the total
outstanding amount which was due and pending against the respondent.
oole *
t Arbitrator
That pursuant to the above said payment ofthe total outstanding dues by the claimant, the said
loan account of the respondent vide clause 10.2 of the collateral and Management letter. was
subrogated by the lender to the claimant company vide subrogation letter dated 03.05.2023.
The undersigned has gone through the contents ofthe application. The undersigned has also gone
through the Loan and Collateral Management Agreement, more specifically Clauses No 06 and
l0 respectively pertaining to Security and remedies of claimant in the events of default stipulated
under the agreement.
Further, the claimant has issued a loan recall notice dated 20.09.2024 whereby the loan was
recalled which has not been replied by the respondent. That thereafter, the instant Arbitral
proceedings were initiated and the Claimant has filed the statement of claim.
The claimant states that as per the statement of account maintained by the Claimant Company.
the Respondent failed/avoided to adhere to the terms ofthe payment and has defaulted in paying
the installments. The claimant further stated that the respondent is irregular in the payment ofthe
monthly EMI'S which clearly indicates that the respondent was deliberately not paying the
monthly EMI's. As on date, the Respondent(s) is liable to pay the Claimant, a sum of Rs.
240670/- along with interest and other charges, in accordance with the said Agreement. It has
been further pointed out by the counsel for the claimant that that the said agreement also enables,
by virtue ofthe terms therein for the claimant to repossess and sell the vehicle on account of the
events ofdefault (on the part ofthe respondent) as stipulated under the said agreement.
I have heard the submissions of the claimant and have gone through all the documents filed by
the claimant including Agreement with endorsement to the effect that the said vehicle is
hypothecated with the lender and the Loan was fully paid by the Claimant. As such, I am fully
convinced that the time is the essence for the Loan and Collateral Management Agreement and
the respondent did not approach the claimant for settlemenv repayment and has deliberately
failed to put his appearance even after service ofthe notice ofthe arbitral proceeding.
It is further stated by the claimant that as per the said terms of the agreement, the Respondents
is/are not entitled to encumber or transfer the said Vehicle, nor part with the possession or create
or allow to be created any lien on the said vehicle without prior approval from the Claimant
Company
v
* Sole
Artitrator *
N€N'
The claimant apprehends that the respondent will dispose-off the said Vehicle and thereafter
leave the jurisdiction of this Tribunal. Funher, it is submitted that the Claimant's interests need
to be protected urgently. If the Claimant's right and interest are not protected urgently, an)'
Award that may be ultimately passed in favor of the Claimant may become a paper award which
may be incapable of execution. It is therefore just and necessary that interim relief may be given
and a duly authorized representative of the Claimant company be appointed as the
Commissioner/Receiver of the said Vehicle with all powers under Order 40 Rule I of the C.P.C
1908, including the power to take possession ofthe same from the Respondent/s and/or from any
other person, who may be in possession ofthe said vehicle.
I have heard the submissions of the claimant and have gone through all the documents filed by
the claimant including Agreement, Subrogation Letter with endorsement to the effect, that the
said Loan account is subrogated in favor of the claimant by the Lender, loan account statement
etc. and I am fully convinced that the apprehension ofthe claimant is real and not imaginary and
his interest needs to be protected.
Section 17 of the Arbitration and Conciliation act, 1996 empowers the tribunal to take any
interim measure or protection, therefore this tribunal has power to take interim measures with
regard to the interim custody or sale ofany goods which are the subject matter ofthe arbitration
agreement and also for an appointment of a receiver, therefore I do hereby appoint Sh.
GANESH CHAUDHARY as the Receiver to take over the possession of the said Vehicle
Make/Model- HYUNDAI I20 bearing Registration no. DL3CBP4282 from the Respondent and
/ or from any other person, who may be in possession of the said Vehicle with necessary police
aid from the Officer (s) in charge, in whose jurisdiction, the said Vehicle/Equipment is lying.
In the light of above stated facts it is directed that the vehicle shall be repossessed peacefully
without creating any nuisance, if the respondent is ready to clear the dues as on date on the spot
during repossession, the claimant shall not repossess the vehicle/s. Fu(her, the claimant is
hereby permitted to sell the vehicle being HI'UI\IDAI I20, bearing Registration No.
DL3CBP4282, if the respondent does not approaches to the claimant to settle or to clear the
outstanding dues after the repossession ofthe said vehicle.
So/e
&UUc{s.
ln view of the above observations, the Application for repossession and sale of vehicle stands
allowed in favor of the claimant. The claimant is directed to adjust the sold amount of the
hypothecated vehicle (in favour of lender) in the loan account of the responden(s) and the
amount in excess to aggegate amount payable by the respondent to the claimant shall be
refunded to the respondent.
As per the Agreement, the sale process shall be conducted through a transparent bidding which
shall be preceded by issuing a Pre-Sale Notice to the Respondent intimating such sale process in
advance and granting an opportr-rnity to the respondent to make the repayment in full, in terms of
the agreement.
The Claimant is directed to serve the copy of instant order to the Respondent in advance, before
sale.
To come up on date fixed, for further proceedings. Copy of Order be given Dasti.
SO R
