DAIMLER FINANCIAL SERVICE Vs. SSPT LOGISTRICT

JUDGEMENT

(1.) These applications have been filed by the applicant seeking for permission of this Court to sell the vehicles which are morefully described in the schedule appended to the Judges Summons and appropriate the sale proceeds towards the amount due under the loan agreements pending arbitral proceedings.

(2.) The applicant is the Finance Service Provider extending financial assistance for the purchase of commercial vehicles, including trucks. The first respondent, which is engaged in the business of Logistics by road, purchased these commercial vehicles / trucks during Sept., 2015 and subsequently. The second respondent is the Managing Partner of the first respondents (for the sake of convenience, they are collectively referred to as "respondent" hereafter). The respondent had availed financial facility for the purchase of vehicles mentioned in the schedules appended to these applications by executing various Loan Agreement-cum~Deed of Hypothecation, for the said vehicles.

(3.) As the respondent defaulted in payment of the Equated Monthly Installments (EMIs) and the cheques issued by them were dishonoured for insufficiency of funds and the act of the respondent was against the terms of the agreements dated 29.09.2015, etc., the applicant recalled the loans under all the agreements and called upon the respondent to pay the total outstanding in the sum of Rs.6,34,88,335.43 as on 29.07.2017, vide legal notice dated 03.08.2017. On receipt of the legal notice, the respondent either should have cleared the outstanding dues or surrendered the hypothecated vehicles. Since the respondent failed to either clear the dues or surrender the vehicles, the applicant was constrained to repossesses all the vehicles, by exercising its rights under Clause 67 of the Agreement, which provides as follows :