1 pps IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION Arbitration Petition No.467 of 2010 L & T Finance Limited .. Petitioner v/s. Mr.Gurdeep Singh Saini & Anr. ..Respondents Ms. Disha Karambar for the Petitioner None for the Respondent CORAM : R.Y.GANOO, J. DATED : 30th March, 2010 P.C. : 1. Loan is borrowed by Respondent No.1 whereas Respondent No.2 is the guarantor. The Petitioners have advanced loan to Respondent No.1 in regard to the truck, more particularly described in the body of the petition. 2. According to the petitioners, an amount to the tune of Rs.3,50,000/- is due and payable. It was also informed to the Court that the Arbitrator is appointed and Arbitration Proceedings are in progress. 2 3. After having considered the submissions and having noted that the Arbitration is in progress, I am inclined to observe that as of today if the Order of injunction is passed against the Respondent No.1 restraining the Respondent No.1 from creating third party right and/or parting with the possession in respect of the truck in regard to which the loan is given, it will meet the ends of justice. 4. It is to be noted that the truck with regard to which the loan has been granted is hypothecated to the petitioners under loan cum hypothecation agreement. It could not be disputed by the Respondents that under the loan cum hypothecation agreement the petitioners have the right to take possession of the said truck and deal with it in accordance with the terms of the said agreement. If this be so, considering the fact that Arbitration Proceedings are in progress Petitioners may be permitted to exercise their rights under the loan cum hypothecation agreement as regards taking physical possession of the suit truck. If the petitioners are successful in taking possession of the said truck, they may move this Court or Arbitrator for appropriate reliefs. 5. In view of the aforesaid observations, following order is passed to 3 dispose of the petition. ORDER i) Pending the hearing and final disposal of the Arbitration Proceeding Respondent no.1 is restrained from creating third party right and/or parting with possession in regard to the truck more particularly, described in Exhibit G. ii) The Petitioners are permitted to act in terms of the loan cum hopothecation agreement dated 14.5.2007 in regard to taking possession of the suit truck. If the petitioners are successful in taking possession of the suit truck, the petitioners are at liberty to apply for further and appropriate reliefs in order to protect their interest before this Honourable Court or before the learned Arbitrator. iii)Petition stands disposed of in above terms with no order as to costs. [R.Y.GANOO, J.]