Sec 9 of Arbitartion act
Querist :
Anonymous
(Querist) 22 July 2011
This query is : Resolved
1. Whether interim orders can be passed in Sec 9 proceedings.
2. Whether I.A is maintainable in A.OP filed under Sec 9 of Arbitration act.
3. Whether the Court is empowered to order to attach the personal properties of the Parties of the Arbitration agreement which is not to the Subject matter of said agreement
Querist :
Anonymous
(Querist) 23 July 2011
the brief facts of the case as follow:
my client (X) is a vehicle finance company. one (A)approached to my client company and availed sum of Rs. ZZZZZ loan amount. Mr.(B) stood as guarantor and both of them executed loan cum hypothecation agreement with arbitration clause. my client company having loan hypothecation endorsement in the original R.C. book. subsequently A, B fails to pay the loan amount and concelled the hypothecated vehicle. my client is unable to re-collect their loan amount and fails to re-possess their hypothecated vehicle. my client came to that A is having some immovable property in his name. We filed a A.O.P. to the competent district court for attachment of said personal property of A. We also file I.A. for interium attachment of above property. But the Honorable Court return the petition with the follow reasons. 1. I.A. is not maintainable in Sec.9 of Arbitration Act. 2. Court cannot attach personal property of A which is not subject matter of Arbitration Agreement. Hence, the very purpose of filing Sec.9 petition is not ful-filled. Hence, we need your valuable advise and opinion with relevent citations.
Thanking you
