AI Structured Summary
Not yet generated for this judgment
Judgment
This is an application filed under Section 9 of the Arbitration & Conciliation Act, 1996 for protective measures in respect of a construction equipment
which was loaned by the petitioner to the respondent by way of an agreement dated 31st January, 2018. Learned counsel appearing for the petitioner
submits that the respondent has defaulted in its payment obligations under the agreement particularly under Clauses 7 and 10 thereof which relate to
mode of payment of instalments and events of defaults respectively. Counsel further submits that the respondent was given several opportunities to
make such payments which also the respondent failed to do. The agreement was terminated on 30th April, 2021 on account of the respondent not
making any payment for higher charges for the equipment. It is submitted that out of 55 monthly instalments which were to be paid, the respondent
has paid 29 of such instalments and that there were four instalments which were due on the date of termination of the agreement and six instalments
due as on the date of filing the present application.
The affidavit of service and the supplementary affidavit are kept on record. Upon hearing learned counsel appearing for the petitioner, the dues of the
respondent are admitted. The particulars stated in the petition show that a sum of Rs.4,52,333/- fell due from the respondent till 24th May, 2021 which
is the date of termination of the agreement exclusive of interest for late payment and non-payment till 24th May, 2021.
This Court is, therefore, of the view that the petitioner should be granted an appropriate interim order particularly since the Clause 11 of the agreement
clearly provides that the borrower (respondent before the Court) is bound to deliver the asset to the company forthwith in the event of a default or
upon termination of the agreement.
There shall, accordingly, be an order in terms of prayer(a) of the petition. Mr. Sukla Das Chandra, Room 38/2, 6. Old Post Office Street is appointed
as the Receiver to forthwith take actual physical possession of the asset described in the prayer(a) of the petition and submit a report to this Court on
the next date. The Receiver shall be entitled to take all assistance for carrying out the directions of this Court. The remuneration of the Receiver
which is fixed at Rs.50,000/- shall be borne by the petitioner and the petitioner shall ensure all travelling and other facilities to the Receiver.
List this matter after three weeks. The interim order shall be in force for a period of five weeks from today.