P ESWARAN Vs. INDO ASIAN FINANCE LIMITED

JUDGEMENT

(1.) BEING aggrieved by the dismissal of application - A.No.5176 of 2008 in A.No.3253 of 2008 and declining to re-deliver the vehicle bearing Registration No.TN 29 AZ 6638, the appellant/3rd party has preferred this appeal.

(2.) THE 2nd respondent - A.Ravi approached the 1st respondent - Indo Asian Finance Limited for financial assistance for purchase of Tata Tipper lorry bearing Regn.No.TN 29 AZ 6638. The 1st respondent sanctioned a sum of Rs.12 lakhs, being the finance amount and a sum of Rs.3,60,000/- being the finance charges, in all aggregating to a sum of Rs.15,60,000/-. The 1st respondent entered into hire purchase agreement with the 2nd respondent on 22.06.2007 in HPO.No.014156 as per which the 2nd respondent has to pay a sum of Rs.52,250/- per month for the first ten months commencing from 21.5.2008 ending on 21.5.1990. According to the 1st respondent, the loan was financed for the jeep i.e., engine/propeller as well as for the truck. The 3rd respondent and one S.Pandian stood as guarantors for the due repayment of the amount. Since the 2nd respondent/hirer did not pay the schedule payments, the 1st respondent filed an application under Section 9 of the Arbitration and Conciliation Act in A.No.3253 of 2008 to seize the Tata Tipper lorry bearing Engine No.478568, Chassis No.155002. By the Order dated 21.7.2008, the learned single Judge appointed Advocate Commissioner to seize the vehicle - Tata Tipper lorry bearing Regn.No.TN 29 AZ 6638. The vehicle was accordingly seized through the Advocate Commissioner.

(3.) THE 1st respondent resisted the application stating that while rendering financial assistance to 2nd respondent - A.Ravi, the amount of Rs.12 lakhs was paid to Tata Motors Limited and the said Pandian appears to have paid a cheque for Rs.1 lakh to Tata Motor Limited and clandestinely retrieved the relevant vehicle papers from Tata Motor Limited and therefore the appellant is not a bonafide purchaser for the value.