1 arbp127-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO.127 OF 2010 M/s.Fullerton India Credit Co. Ltd. ....Petitioner V/s. M/s.Universal Diamonds Tools & Ors. ....Respondents Ms.Jyoti Pandey i/b Dinesh Tiwari & Associates for the Petitioner. None for the Respondents. CORAM : S.J. VAZIFDAR, J. DATE : 4TH OCTOBER, 2010. P.C. :- 1. The petition has been filed under section 9 of the Arbitration and Conciliation Act, 1996. 2. The parties had entered into a master loan agreement dated 11.8.2008 under which the plaintiff lent and advanced the money to the respondents against the hypothecation of the equipments described in the second schedule to the agreement. According to the petitioner, an amount of over Rs.9.00 lacs is due and payable as on date with further interest. The respondents having failed to pay the amounts despite the notices dated 5.5.2009 and 3.6.2009, the present petition has been filed. 3. The respondents are absent despite notice. The affidavit of service is taken on record. The notices were sought to be served on the same address mentioned in the Master Loan Agreement. The packets have been returned with the remarks “left”. Under section 3 of the said Act, 2 arbp127-10 this is adequate service. 4. In the circumstances, the arbitration petition is made absolute in terms of prayer (i). However, the Court Receiver shall not at this stage dispossess any third party, if found, in possession of the said equipments but shall appoint the third party as his agent without security or royalty. In the event of the third party being found in possession, the Court Receiver shall make a report for further orders regarding the terms and conditions of the agency. However, in the event of the hypothecated equipments being found in possession of the respondents, the Court Receiver shall appoint such respondents as his agent on the usual terms and conditions including as to security and royalty. In the event of the respondents refusing to accept the agency of the Court Receiver, the Court Receiver shall appoint any third party as his agent in respect of the equipments on the usual terms and conditions. In that event, the respondents shall be entitled to bid for the agency of the Court Receiver. 5. Till the Court Receiver takes possession, the respondents are restrained for disposing off, alienating, encumbering, parting with possession of or creating any third party right, title and/or interest in respect of the hypothecated property described in prayer (i) of the arbitration petition. 6. In the event of the petitioner not adopting proceedings for appointment of an arbitrator on or before 31.10.2010, this order shall stand vacated without further reference to the Court.