1 61.arbp.594.595.10.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION skt ARBITRATION PETITION NO. 1256 OF 2010 TATA Capital Ltd. ... Petitioner Vs. Sri Balaji Metals and Minerals Pvt. Ltd. & Anr. ... Respondents WITH ARBITRATION PETITION NO. 594 OF 2010 Sri Balaji Metals & Minerals (Pvt.) Ltd. & Anr. ... Petitioners Vs. TATA Capital Ltd. ... Respondent WITH ARBITRATION PETITION NO. 595 OF 2010 Sri Balaji Metals & Minerals (Pvt.) Ltd. & Anr. ... Petitioners Vs. TATA Capital Ltd. ... Respondent WITH ARBITRATION PETITION NO. 1257 OF 2010 TATA Capital Ltd. ... Petitioner Vs. Sri Balaji Metals and Minerals Pvt. Ltd. & Anr. ... Respondents ...... 2 61.arbp.594.595.10.sxw Mr.Rahul Mehta i/by KMC Legal Venture for the Petitioner in Arbitration Petition Nos.1256/10 & 1257/10 and Respondents in Arbitration Petition Nos.594/10 & 595/10. Mr.Vishal Shriyan i/by Legasis Partners for the Petitioner in Arbitration Petition No.594/10 & 595/10 and Respondents Arbitration Petition Nos. 1256/10 & 1257/10. ...... CORAM : S.J. VAZIFDAR, J. DATE : OCTOBER 11th, 2010. P.C. 1 These are the petitions under Section 9 of the Arbitration and Conciliation Act, 1996. 2 The facts in all the petitions are similar. The Petitioners in Arbitration Petition Nos.1256/10 & 1257/10 are the Respondents in Arbitration Petition Nos.594/10 & 595/10 and the Petitioners in Arbitration Petition Nos.594/10 & 595/10 are the Respondents in Arbitration Petition Nos. 1256/10 & 1257/10. 3 The parties have entered into loan-cum-hypothecation agreements. The Arbitration Petition Nos.594/10 and 1256/10 pertain to one of the loan agreements, dated 31st March 2009 and Arbitration Petition Nos. 3 61.arbp.594.595.10.sxw 1257/10 & 595/10 pertain to the other loan agreement dated 27th April 2009. Each of the Petitioners seek interim orders pending the making of the award and the enforcement thereof. The execution of the loan-cum- hypothecation agreement is admitted and that they contain arbitration clause is admitted. It is also admitted that the Respondents in Arbitration Petition Nos.1256/10 and 1257/10 had hypothecated the equipments in favour of the Petitioner in those petitions to secure the dues of the Petitioner in the said petitions. 4 According to the Petitioner in Arbitration Petition Nos.1256/10 & 1257/10 an aggregate amount of about Rs.4.38 crores is due as on date. According to the Respondents in those petitions, only an amount of about Rs.23 lakh is due by them. The Respondents in these petitions who are the petitioners in Arbitration Petition Nos.594/10 & 595/10 to show their bona fides agree and undertake to pay an amount of Rs.5 lakhs to be adjusted under both the agreements on or before the 10th day of each month commencing from 10th November 2010. They further agree and undertake to pay an amount of Rs.25 lakh on or before 30th April 2011. The undertakings are accepted. 4 61.arbp.594.595.10.sxw 5 At this stage, the ends of justice would be met by disposing of the petitions by the following order:- (i) Pending the award and in the event of the same being in favour of the Petitioners in Arbitration Petition Nos.1256/10 & 1257/10 till the enforcement thereof, the Respondents in these petitions shall not dispose of, alienate, encumber, part with possession of or create any third party right, title and/or interest in respect of the equipment which has been hypothecated under the said agreements. The Respondents are restrained from shifting the equipment from the present sight without the leave of the Court. (ii) The Respondents in Arbitration Petition Nos. 1256/10 & 1257/10 shall pay a sum of Rs.5 lakh on or before the 10th day of each month commencing from 10th November 2010, till the repayment of the entire dues under the said agreements. The said Respondents shall also pay a sum of Rs.25 lakh on or before 25th April 2011. (iii) In the event of the said Respondents committing a default in payment of any of the above installments or the sum of Rs.25 lakhs as aforesaid, the Court Receiver, High Court, Bombay shall stand appointed as a Receiver of the hypothecated equipment without further orders. The Court Receiver shall, in the first instance, appoint the 5 61.arbp.594.595.10.sxw Respondents in each petition, as his agent in respect of the said vehicles on the usual terms and conditions including as to security and royalty. (iv) In the event of the Respondents refusing to accept the agency of the Court Receiver, the Court Receiver shall appoint any third party as an agent in respect thereof on the same terms and conditions. In that event, the Respondents shall be at liberty to bid for the agency. -