- 1 - 26.arbpl.1221.11 gr skt IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION (L) NO. 1221 OF 2011 Citicorp Finance (I) Ltd. ..Petitioner -Versus- Mr.Gurudeep Singh Saini & Anr. ..Respondents AND ARBITRATION PETITION (L) NO. 1222 OF 2011 AND ARBITRATION PETITION (L) NO. 1224 OF 2011 Citicorp Finance (I) Ltd. ..Petitioner -Versus- Irfan A. Shaikh & Anr. ..Respondents AND ARBITRATION PETITION (L) NO. 1225 OF 2011 Citicorp Finance (I) Ltd. ..Petitioner -Versus- Mr.Dhondiram Baduge & Anr. ..Respondents AND ARBITRATION PETITION (L) NO. 1227 OF 2011 Citicorp Finance (I) Ltd. ..Petitioner -Versus- Mr.Sushant A. Pauli & Anr. ..Respondents .......... Ms.Shakuntala Joshi i/b S.I. Joshi & Co. for the Petitioner. None for the Respondents. .......... CORAM : S.J. VAZIFDAR, J. DATE : 5TH DECEMBER 2011. P.C. - 2 - 26.arbpl.1221.11 gr 1 These are petitions under section 9 of the Arbitration and Conciliation Act, 1996. 2 According to the petitioners, the respondents are bound and liable to pay amounts under the loan/hypothecation agreements entered into between the petitioners and respondent Nos.1 and 2. Respondent No.2 in the petitions are the guarantors. According to the petitioners, the amount under the said agreement has not been repaid. The petitioners dues are secured by the hypothecation of the vehicle. As a result thereof, the matter is to be decided in arbitration. 3 In the circumstances, both the petitions are disposed of by the following order :- (i) Pending the hearing and final disposal of the arbitration proceedings, and for a period of twelve weeks thereafter the Court Receiver, High Court, Bombay is appointed as a Receiver of the hypothecated vehicles referred to in the agreements and prayer clause (a) of the petitions, with all powers under Order XL Rule 1 of the Code of Civil Procedure, 1908. (ii) In the event of the petitioners itself indicating the location of the said vehicle, the Court Receiver shall take possession thereof, without notice to the respondents. - 3 - 26.arbpl.1221.11 gr (iii) In the event of the respondents not handing over possession to the Court Receiver, as directed by him, the Court Receiver shall take forcible possession without further reference to this Court. For this purpose, the Court Receiver shall be entitled to take the assistance of the police. The Court Receiver shall also enter into the agency agreements at the earliest. (iv) Upon taking possession of the said vehicles, the Court Receiver shall, in the first instance, appoint the respondents as his agents in respect of the said vehicles on the usual terms and conditions including as to security and royalty but only after the agency agreements are executed by the concerned respondents. (v) In the event of the respondents refusing to accept the agency of the Court Receiver, the Court Receiver shall file a report for seeking directions including for appointing an agent in respect thereof or for the sale of the said hypothecated vehicles. (vi) Liberty to apply for further reliefs, 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 petitioners. All rights and contentions in that regard are kept open. (vii) Till the Court Receiver takes possession of the vehicles, the respondents, either by themselves or through - 4 - 26.arbpl.1221.11 gr their servants or agents are restrained in any manner from transferring, disposing of, alienating, encumbering or creating any third party rights in respect of the said hypothecated vehicles. (viii) The respondents are ordered and directed to disclose the location of the vehicle within two weeks from the date of service of the copy of this order. (ix) It is clarified that the Court Receiver shall take physical possession of the vehicles upon the petitioners identifying the same in the event of the Court Receiver being unable to locate the respondents despite efforts. (x) The undertaking to file the affidavits of service within two weeks from today, if not already filed, is accepted. -