IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10.06.2011 CORAM THE HON'BLE MR. JUSTICE VINOD K.SHARMA A.No.6032 of 2010 ORDER This application, under Section 9 of the Arbitration and Conciliation Act, 1996, has been moved with the prayer for directing the respondent to furnish security for a sum of Rs.85,757/- (Rupees Eighty Five Thousand Seven Hundred Fifty Seven only), failing which, to attach immovable properties detailed in the schedule to the Judge's Summons. 2. In the affidavit filed in support of the application, it is pleaded that the respondent had availed a loan for a sum of Rs.80,000/- (Rupees Eighty Thousand only) under loan agreement dated 07.03.2006 for purchase of TATA vehicle bearing Reg. No.TN-63A-6778, which was to be repaid along with Rs.37,200/- (Rupees Thirty Seven Thousand Two Hundred only), totalling Rs.1,17,200/- (Rupees One Lakh Seventeen Thousand Two Hundred only) i.e. inclusive of interest and other charges, in 35 monthly installments. 3. As the respondent failed to pay the installments regularly, a notice was issued to repay the outstanding amount of Rs.85,757/- (Rupees Eighty Five Thousand Seven Hundred Fifty Seven only). 4. On failure to pay, the applicant, in exercise of powers vested under loan agreement, took possession of the vehicle, and sold it for Rs.40,000/- (Rupees Forty Thousand only), but without associating the respondent with the sale, or getting an order from the judicial authority. 5. Even after adjustment of Rs.40,000/- (Rupees Forty Thousand only) towards sale price, the applicant claimed a sum of Rs.85,757/- (Rupees Eighty Five Thousand Seven Hundred Fifty Seven only), inclusive of penal interest and other charges to be outstanding. 6. The applicant, therefore, invoked the arbitration clause, and appointed an arbitrator. It has been mentioned in the application, that the respondent is likely to dispose off the properties, thereby defeating the rights of the applicant, to enforce the award, thus, property in schedule to Judge's summons, deserves to be attached. The application does not contain any averment in support of this assertion. 7. It is admitted that the arbitration award has been passed, but is yet to become a decree in terms of Section 31 of the Arbitration and Conciliation Act. 8. Learned counsel for the applicant, vehemently contended that as the amount is due and payable, the respondent should be directed to furnish security for the awarded amount or in the alternative, property be attached. The contention of the learned counsel for the applicant is, that under Section 9 of the Act, it is open to this Court to secure the amount before initiation of arbitration proceedings, during the pendency of arbitration proceedings, as also after passing of the award. It would, therefore, be just and equitable if direction is issued to the respondent to furnish security. 9. In view of the fact that award has already been passed, and it will always be open to the applicant to get the award executed after it becomes enforceable as decree, no interim order is required to be passed, when there is no material or averments supporting the stand that the respondent is trying to dispose of the property to defeat the rights of the applicant to enforce the award. VINOD K.SHARMA,J., ar 10. The jurisdiction under Section 9 of the Arbitration and Conciliation Act can be exercised only in exceptional cases. This Court, in exercise of jurisdiction under Section 9 of the Act, cannot usurp the powers of the Executing Court, in executing the decree. The Executing Court has all the powers to execute the decree, including attachment and sale. The applicant has not only seized the hypothecated vehicle, but has also sold it, without any order of judicial authority, therefore, it cannot be said that applicant has a prima facie case, nor the applicant is likely to suffer irreparable loss, as the Executing Court has all the powers, including attachment and sale of property of judgment debtor. 11. Consequently, finding no merit in this application, it is ordered to be dismissed. No costs. ar