SUNDARAM FINANCE LTD Vs. K.STALIN

JUDGEMENT

(1.) This order shall dispose of A. Nos. 111, 268 and 360 of 2013, as the common question of fact and law are involved in all these applications. These three applications under Order XIV Rule 8 of O.S. Rules read with sec. 9(ii)(b) & (e) of the Arbitration and Conciliation Act, 1996 have been filed by M/s. Sundaram Finance Ltd. to direct the respondent to furnish security or in the alternative, attach the schedule mentioned properties to secure the amount in arbitration.

(2.) It is not in dispute that so far arbitration proceedings have not commenced and undertaking is filed to start arbitration proceedings.

(3.) Though it is permissible for this Court to entertain an application prior to commencement of arbitration proceedings, but it depends on facts of each case. It is admitted case of the applicant that the vehicle against which loan was advanced has been hypothecated in favour of the applicant and loan is also guaranteed by the guarantor. The loan therefore, is already secured, which does not require further security. It will be always open to the applicant to enforce security and move against the guarantor.