Authority: Madras High Court

Order Date: 16 July 2026

Case Overview

  • Applicant: M/s. Cholamandalam Investment and Finance Company Limited (address: Chola Crest, C54‑55 & Super B‑4, Guindy, Chennai‑600032).
  • Respondent: Satya Narayan (no appearance; notice returned with endorsement ‘refused’, deemed served; listed in cause‑list and marked absent, case proceeded ex parte).
  • Arbitration Application No. 602 of 2026 filed under Order XIV Rule 8 of Original Side Rules and Section 9(1)(ii)(c)&(e) of the Arbitration and Conciliation Act, 1996, seeking appointment of a party receiver.
  • Underlying loan: Loan Agreement dated 03‑04‑2023 for purchase of a vehicle; respondent has defaulted on instalments despite repeated demands.
  • Vehicle details: Model‑PRO 3018HSD WB5490 22 FT, chassis No. MC2CBMRC0PC088805, engine No. E426CDPC429984, registration No. UP83CT8965, with all accessories as described in the schedule to the Judge’s summons.
  • Applicant’s counsel (Mr. T. Gowri Shankar, SAN Law Partners LLP) argued that appointment of a party receiver would be more effective for asset recovery.
  • Court found a prima facie case for appointment of a party receiver.

Final Outcome

  • Mr. Dharamveer Singh, Assistant Receivable Manager of Cholamandalam Investment and Finance Company Limited, is appointed as Party Receiver.
  • He is authorized to visit the respondent’s premises (or any place where the vehicle is found), with local police protection, to break open locks if necessary and seize the vehicle.
  • Police assistance: Receiver must request the local police station; the Station House Officer shall dispatch police personnel to accompany the receiver. Police must counter‑sign the record of lock break‑open and re‑lock the premises.
  • If jurisdictional police are uncooperative, the receiver may approach the Superintendent of Police for assistance.
  • Condition precedent: Should the respondent clear the unpaid instalments or make substantial payment to the applicant’s satisfaction, the applicant must return the vehicle in the condition it was repossessed.
  • The application is disposed of with the above terms.

Topics: Legal Enforcement, NBFC Asset Recovery