1 12.arbp.453.10 group.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION skt ARBITRATION PETITION NO.453 OF 2010 ALONG WITH ARBITRATION PETITION NOS.498/2010, 748/2010, 749/2010, 950/2010, 951/2010 954/2010, 955/2010, 956/2010, 957/2010 and 990/2010. L & T Finance Ltd.. ..Petitioner (in all petitions) Versus Gegeo Construction Company Pvt. Ltd. & Anr. (453/10) Satish Kumar Sonkar & Ors. (498/10) Desai Soma Sekhar Reddy & Anr. (748/10) Mohan A. Deshmukh & Anr. (749/10) Nandy S. Reddy & Ors. (950/10) Thota Raja Shekhar Reddy S/o T. Chinna Venkat Reddy & Ors. (951/10) Konapuli J. Naidu & Anr. (954/10) Arabottu Anthu Raju S/o Parusu Ramudu & Anr. (955/10) Katika Reddy M. Reddy S/o.K.Ramasubba & Anr. (956/10) Sangati Bayana & Anr. (957/10) Kopparthi H. Reddy & ors. (990/10) ..Respondents (in respective matters) 2 12.arbp.453.10 group.sxw .......... Mr.Pramod Bhosale i/b Disha Karambar, for the Petitioner. None for the Respondents in all matters. .......... CORAM : S.J. VAZIFDAR, J. DATE : SEPTEMBER 28th , 2010. P.C. 1 These are the petitions under Section 9 of the Arbitration and Conciliation Act, 1996. 2 The Respondents were absent when the interim orders were passed. The Respondents are absent today. There are no affidavits in reply. It is, therefore, necessary to protect the Petitioner’s claims which arise under the respective loan-cum-hypothecation agreement entered into between the parties. The Respondent Nos.1 and 2 in Arbitration Petition No. 951/2010 and 990/2010 and the first Respondent in the other petitions are the borrowers, under the loan-cum-hypothecation agreements for purchase of the equipment/machinery which were hypothecated in the Petitioner’s favour. The other Respondents in the Arbitration Petitions stood as guarantors to the said loans. 3 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 of Bombay is 3 12.arbp.453.10 group.sxw appointed as a Receiver under Order XL Rule 1 of the Code of Civil Procedure, 1908 (as amended) in respect of the said equipment/machinery hypothecated to the Petitioner and described in Exhibit-E to the Arbitration Petition Nos.954/2010 and 955/2010 and in Exhibit-F of the other Arbitration Petitions. (ii) Liberty to the Court Receiver to apply in the event of any difficulty in taking possession of the equipment/machinery. (iii) Upon taking possession of the equipment/machinery, the Court Receiver shall, in the first instance, appoint the respective Respondents as agents in respect of the said equipment/machinery 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 equipment/machinery on the same terms and conditions. In that event the respective Respondents shall be entitled to bid for the agency. (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 the security being inadequate to 4 12.arbp.453.10 group.sxw 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 equipment/machinery, 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 same 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 Exhibit-F to the Arbitration Petition Nos.954/2010 and 955/2010 and Exhibit-G to the Arbitration Petition Nos. 498/2010, 748/2010, 749/2010, 950/2010, 951/2010, 956/2010, 957/2010, 990/2010, without the leave of the Court. (viii) The costs of the petitions shall be the costs in the arbitration proceedings. -