BEFORE THE SOLE ARBITRATOR AT TIRUPPUR
Monday 20th Day of May 2024
PRESENT
Mr. R. RAMARAJ, B. SC., B.L.
DISTRICT AND SESSIONS JUDGE (RETIRED)
( Venue: 28/3,Upstairs, District Consumer Commission,Senguthapuram,1st
street, Mangalam Road, Karuvampalayam,Tirupur-641604 )
I.A.No. 1 of 2024
in
ARBITRATION CASE ID.No.13939/ 2024
In the matter of Arbitration and Conciliation Act,1996. Reference of Dispute between
M/s.SHRIRAM FINANCE LTD., (Formerly Known as Shriram Transport Finance Co.Ltd)
and Mrs. Vidhya and others.
M/s. Shriram Finance Ltd.,Erode
(Formerly Known as M/s.Shriram Transport Finance Co.Ltd)
Represented by its Authorised Signatory Mr.C.Gopinath.
No.42/13,Sibi's Nest,II Floor,Axis Bank Upstairs,Perundurai Road,Erode-
638012
...Petitioner/Claimant
-Vs-
1. Sarathadevi K
W/o Mayilsamy
47/20, Ganapathi Nagar,Vettu Kattu Valasu,Erode Collectorate,Erode-638011
2. Shanmugam
S/o Ponnusamy
D/No-444/1a,Srivel Nagar Nalliyampalayam Rangampalayam, Erode- 638009.
3. Mayilsamy S
S/o Shanmugam
No.339/2,Vettukattu Valasu,Nasiyanoor Road,Erode Collectorate,Erode-638011
…Respondents/Respondents
This Application coming before me finally on 20.05.2024 in the presence of
Mr.J.Kavin Prabhakaran B.A.,LLB, Corporate Law Associates, Counsel for the
claimant upon hearing the arguments on the side of the Claimant, perusing the
material records and having stood over for consideration till this date, I pass the
following:-
ORDER
This Application is made under Sec.17 of the Arbitration and conciliation Act, 1996
for attachment before award of immovable property, in the event of failure of the
2nd respondent to furnish security for the arbitral claim.
Briefly stated, the case of the Petitioner/ Claimant in the Application and
the Claim Petition is as follows:
1. The 1st Respondent availed a Loan of Rs. 3380000/- from the Claimant in
respect of the vehicle bearing Registration No. TN 86 D 1744 by executing a Loan-
Cum- Hypothecation Agreement dated 01-08-2018. The financial commitment
undertaken by the 1st respondent with interest of a sum of Rs. 1519433/- totally a
sum of Rs. 4899433 /- The amount is repayable over a period of 64 months
commencing from 05-09-2018 and ending with 05-06-2024. The 2nd Respondent
signed as Guarantor for the loan. The 1 st Respondent made total payments of a sum
of Rs. 2596371/- only (Including Sale amount of the vehicle) towards the monthly
installments and failed to pay the balance dues. A sum of Rs.3854438/- was due as
on 30.01.2024. A notice dated 06.02.2024 was issued by the Claimant calling
upon the Respondents to pay the said dues or to face the Arbitration proceedings as
envisaged in the agreement. As they failed to pay the balance dues, the claimant
has filed the above Claim Petition for recovery of a sum of Rs. 3854438/-. The 2nd
Respondent is the owner of the petition mentioned schedule of property. The 2nd
Respondent is attempting to alienate the property with intent to defraud the
petitioner/claimant. Hence, the petitioner has filed this petition to direct the 2 nd
Respondent to furnish security to the tune of Rs. 3854438/-which is claimed in the
Claim Petition and in the event of failure, for attachment before award of the said
schedule of property, to answer any award that may be passed in favour of the
petitioner/claimant.
2. I issued notice dated 22.04.2024 in the above I.A.No.1 of 2024 calling upon
the 2nd Respondent to appear on 08.05.2024 by 11.00 AM to furnish security to
the tune of Rs. 3854438/- before the Arbitral Tribunal. The property mentioned in
the schedule is sufficient to satisfy the award that may be passed in favour of the
claimant. An Ad interim conditional attachment order was passed on 20.05.2024.
3. The point for consideration is whether the petition in I.A.No.1 of 2024 in
Arbitration Case ID No. 13939/2024 is to be allowed or not?
4. Point: The records were perused. As seen from the Loan-Cum- Hypothecation
Agreement dated 01.08.2018, which is filed as Doc.No.2 with the Claim petition,
the 1st Respondent availed a Loan of Rs. 3380000/- from the Claimant in respect
of vehicle bearing Registration No. TN 86 D 1744. The 1st Respondent signed as
Borrower, 2nd Respondent stood as guarantor and 3 rd Respondent stood as Co-
Borrower for the loan. The Statement of account in respect of the loan, which is filed
as Doc.No.3 with the Claim petition, reveals that the 1 st Respondent has paid only a
sum of Rs. 2596371/- only (Including Sale amount of the vehicle) towards the loan
and failed to pay the balance dues. A sum of Rs. 3854438/- was due as on
30.01.2024. The Claimant has produced a copy of the Sale deed dated 23.12.2010
registered as Doc.No.7911/2010 on the file of the Erode Joint S.R.O, showing that
the 2nd Respondent is the owner of the petition Schedule property. The perusal of
the Encumbrance certificate reveals that the sale deed was duly registered in the
2nd respondent name and there is no encumbrance. The petitioner’s apprehension is
only quite reasonable genuine and acceptable one. Hence, the Claimant has made
out a case for attachment of the petition Schedule property before passing the
award in the Arbitration Case. The petition is therefore to be allowed. The point is
answered accordingly.
5. In the result, the petition in I.A.No.1 of 2024 in Arbitration Case ID.No.
13939/2024 is allowed. That the immovable property more fully set out in the
Schedule hereunder, be and is hereby attached and the same do remain under the
attachment until further orders of this Tribunal. The Property sought to be attached
situates within the jurisdiction of the Hon’ble Principal District Court, Erode. Hence, I
request the Hon’ble Principal District Court, Erode to implement the Order of
attachment as per the provision of section 17 of the Arbitration & Concillation Act,
1996 read with Section 136 Civil Procedure Code, 1908, by appointing a senior
bailiff of the Hon’ble Court and intimate the same respect to jurisdictional Sub
Register Concern.
Prononced this order in the Arbitral Venue On 20th day of May 2024.
SOLE ARBITRATOR
Schedule of Property
(Property Belongs to 2nd Respondent Mr.Shanmugam.P) Doc No.7911/2010
Full / Correct description of the property
ஈரோடு ரிடி, ஈரோடு சப்டி, ஈரோடு தாலூக்கா, ஈரோடு முனிசிபல்
லிமிட்டுக்கு வெளிப்புரம், ஈரோடு கிராமம், பழைய க.ச.527, இதற்கு புதிய
ரீ.சர்வே எண்.444/1 நெ.பு.ஹெ.0.56.0 (தற்போதைய சப்டிவிஷன்படி 444/1A,
444/1B & 444/2B) க்கு பு.ஏ.1.38 இதில் மனைநிலங்களாக பிரிவினை செய்து
"ஸ்ரீ வேல் நகர்" எனப் பெயர் விற்பனை செய்து வருவதில் சைட் நெ.19 க்கு
செக்குப்பந்தி விபரம்.
25 அடி அகல தென்வடல் ரோட்டுக்கும்
மேற்கு,
சைட் நெ.14 க்கும்
கிழக்கு,
சைட் நெ.20 க்கும்
வடக்கு,
சைட் நெ.16,17,18 க்கும்
தெற்கு,
இதன் மத்தியில் வடபுறம் கிழமேலடி 65, தென்புறம் கிழமேலடி 65,
கிழபுறமும் மேல்புறமும் தென்வடலடி 30, இந்தவகை அளவுள்ள 1950 சதுரடிகள்
(181.23 சதுர மீட்டர்) கொண்ட மனைக்காலியிடம் பூராவும், ஷ காலைகளில்
விடப்பட்டிருக்கும் சகல ரோடுகளின் பொது உபயோக பாத்தியமும், இதற்கு
சம்மந்தப்பட்ட மாமூல் வழிநடை தட பாத்தியங்களும், 4.6.2010 ம் தேதியில்
காசிபாளையம் மூன்றாம் நிலை நகராட்சிக்கு ஈரோடு மாவட்ட பதிவாளர்
அலுவலகத்திய 3605/2010 நெ. தான சாசனத்தில் கண்டுள்ள ரோட்டின்
வழியாகவும் மற்றும் ஷை பூமிக்கு மாமூலாக இருந்து வரும் ரோட்டின்
வழியாகவும் போக வரவும், வண்டி வாகனாதிகள் ஒட்டிக் கொள்ளவும் போன்ற பொது
உபயோக பாத்தியங்களும் சகிதம் கிரயம். ஷை சொத்து காசிபாளையம் மூன்றாம்
நிலை நகராட்சி எல்லைக்குட்பட்டது.
பத்திர எண். 7911 / 2010 - படி பாத்தியபட்டது.
SOLE ARBITRATOR
Mr. R. RAMARAJ, M. SC., B.L.
DISTRICT AND SESSIONS JUDGE (RETIRED)
( Venue: 28/3,Upstairs, District Consumer Commission,Senguthapuram,1st street,
Mangalam Road, Karuvampalayam,Tirupur-641604 )
______________________________________________________________
Date:
20.05.2024
To:
The Hon’ble Principal District Judge,
Erode District Court,
Erode.
Sir,
Sub: Execution of the Attachment Order passed in I.A.No.1 of 2024
in Arbitration Case ID.No. 13939 of 2024 –Reg
1. The claimant company, namely M/s. SHRIRAM FINANCE LTD., (Formerly Known
as Shriram Transport Finance Co.Ltd) appointed me as the Sole Arbitrator through
JustAct Institutional Dispute Resolution Centre to arbitrate the dispute/claim
between the claimant and the Respondents 1. Sarathadevi ,2. Shanmugam and
3.Mayilsamy in respect of the Loan Agreement dated 01.08.2018.
2. I have accorded my consent to act as Sole Arbitrator in the said matter, and
after following the due process of law this Tribunal has passed an attachment order
of the property mentioned in the petition.
3. As the property, sought to be attached, situates within the jurisdiction of the
Hon’ble Principal District Court, Erode, I request that the Hon’ble District Judge may
be pleased to direct for appointment of a Senior bailiff of the court to implement the
attachment order as per the provisions of Section 17 of the Arbitration and
Conciliation Act, read with Section 136 of the Code of Civil Procedure.
Thanking You,
(R.RAMARAJ)
SOLE
ARBITRATOR
