Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

sridhar pasumarthy (ADVOCATE)     17 January 2013

Section 9 of arbitration act

Respected Colleague Members,

A private finance company granted loan to an individual for purchase of a heavy vehicle. In the loan agreement, there was arbitration clause. As the borrower committed default in payment of monthly instalments,finance company is intending to initiate arbitration proceedings.

My queries are :-

1. Can a petition under Section 9 of Arbitration Act be moved before District Judge's court seeking interim attachment of an immovable property of the borrower for securing the recovery of the award amount that may be passed by Arbitrator in future?

2. If so, does an interim application for the same relief pending disposal of the main Section 9 petition is maintainable?

Pls answer my queries with citations, if any.

I also request you to please provide a format petition. It's very urgent.

Thanks in advance.



Learning

 6 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     17 January 2013

Dear Sridhar,

 

This is not my area of law, but as far as I know injunction u/s 9 Arb Act are governed broadly on the same principles as in SRA/CPC. I don't think in this case getting the house attached as such would be allowed, apart from unconsionable and excessive - it is trite law attachment before judgment is a grave and serious measure that has to be resorted to only in the rarest cases. In this case the more apt remedy seems to be appointment of a reciever to take possession of the vehicle. 

Rahul Gupta (Advocate)     17 January 2013

Dear Sridhar,

Language of Sec. 9, particularly Sec. 9 (ii) (c) and (e) is itself very clear that the Court has the power to grant the relief which you intend to pray for. According to it in order to secure the amount in dispute in the arbitration, the Court may, on an application by a party, pass order or such other interim measure of protection as may appear to the Court to be just and convenient, either, before, or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.

I have moulded the Section itself to answer your query.

Thank You

Rahul Gupta


 
 
 
 

Sunil S Nair (lawyer)     26 May 2014

What are the clauses stated in the agreement ,when the borrower as taken loan as he submitted his house documents as a surety for loan what about gaurantors for the said loan who in default of borrower shall be liable equally as the borrower for repayment of loan amount to the said finance company if there is arbitration clause arbitration proceeding shall be binding both the parties and very well u/9 of arbitration act you can move application for attachment of property in this case heavy vehicle 

suresh sharma   17 March 2016

You can very well file application under section 9 of arb act before starting arbitration. You will have to satisfy the curt that you will very soon stat arb proceeding.

suresh sharma   17 March 2016

You can very well file application under section 9 of arb act before starting arbitration. You will have to satisfy the curt that you will very soon stat arb proceeding.

suresh sharma   17 March 2016

You can very well file application under section 9 of arb act before starting arbitration. You will have to satisfy the curt that you will very soon stat arb proceeding.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register