HINDUJA LEYLAND FINANCE Vs. KAILASH CHANDRA SETHI

JUDGEMENT

(1.) THIS application under Order XIV Rule 8 of O.S. Rules read with sec.9(ii)(b) and (e) of Arbitration and Conciliation Act, 1996 have been filed by M/s.Hinduja Leyland Finance Ltd., seeking an order to appoint an Advocate Commissioner to seize and deliver the vehicle, which is available at the respondent's premises at Putibandh, Dhanupali, Orissa.

(2.) THE question to be determined in this case is "whether the provision of section 9 of the Arbitration and Conciliation Act, can be invoked to use the High Court as a Recovery Agent by Finance Companies/Banks to seize the vehicle ex-parte, without giving an opportunity of hearing to the respondent/ borrower, by seeking appointment of Advocate Commissioner, to seize the vehicle even without serving notice of petition along with the documents, so as to enable the borrower to know the reason for passing this extreme order of seizure."

(3.) READING of the Section 9 of the Arbitration and Conciliation Act, 1996, shows that power under section 9 can be exercised before, during arbitral proceedings or at any time after passing arbitral award, but before it is enforced in accordance with section 36 of the Arbitration and Conciliation Act, 1996, the jurisdiction can be exercised for preservation, interim custody or sale of any goods which are subject matter of arbitration.