1 arbp641-09g IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO.641 OF 2009 L & T Finance Ltd. ....Petitioner V/s. Narendra J. Sharma & Anr. ....Respondents WITH ARBITRATION PETITION NO.878 OF 2009 L & T Finance Ltd. ....Petitioner V/s. Bharat R. Lahane & Anr. ....Respondents WITH ARBITRATION PETITION NO.880 OF 2009 L & T Finance Ltd. ....Petitioner V/s. Ghanshyam B. Pawar & Anr. ....Respondents Mr.Anand Poojari with Mr.Jairaj Shivani i/b M/s.S.I. Joshi & Co. for the Petitioner. None for the Respondents. CORAM : S.J. VAZIFDAR, J. DATE : 12TH OCTOBER, 2010. P.C. :- 1. These are the petitions under Section 9 of the Arbitration and Conciliation Act, 1996. 2. According to the Petitioner, the Respondents in each of the 2 arbp641-09g petitions have defaulted in making payment under the loan-cum- hypothecation agreements entered into between the Petitioner and Respondent No.1. Respondent No.2 in each of the petitions is the guarantor. Respondent No.1 in each of the petitions has hypothecated the vehicles/equipments in favour of the Petitioner to secure the repayment of the amounts due under the agreements. 3. None of the Respondents have filed the affidavit in reply. The Petitioners’ dues and the security are therefore required to be protected. 4. In the circumstances, the above petitions are disposed of by the following order:- (i) Pending the hearing and final disposal of the arbitration proceedings and if an award is passed in the Petitioner’s favour till it is enforced, the Court Receiver, High Court, Bombay is appointed as a Receiver under Order XL Rule 1 of the Code of Civil Procedure, 1908 (as amended) in respect of the said hypothecated vehicles/tractors. (ii) Liberty to the Court Receiver to apply in the event of any difficulty in taking possession of the vehicles. (iii) Upon taking possession of the said vehicles, the Court Receiver shall, in the first instance, appoint the respective Respondents as agents 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 of the said vehicles on the same terms and conditions. In that event the respective Respondents shall be entitled to bid for the agency. 3 arbp641-09g (v) Liberty to apply for further reliefs by separate applications including in respect of those reliefs which have not been granted by this Court, after the Court Receiver takes possession and in the event of the security being inadequate to meet the alleged claims of the Petitioner. All rights and contentions in that regard are kept open. (vi) Till the Court Receiver takes possession of the vehicles/tractors, the Respondents, their respective servants, agents and/or representatives are restrained from in any manner disposing of, alienating, encumbering and/or creating third party rights in respect of the vehicles/tractors which are the subject matter of their respective agreements. (vii) Pending the hearing and final disposal of the arbitration proceedings and in the event of the award being in the Petitioner’s favour till it is enforced, the Respondents, their respective servants and agents are restrained from in any manner parting with possession of and/or creating third party rights and/or alienating and/or encumbering the properties described in Exhibits “H”, “G” and “F” to Arbitration Petition Nos. 641 of 2009, 878 of 2009 and 880 of 2009, without the leave of the Court. (viii) The costs of the petitions shall be the costs in the arbitration proceedings.