Madras High Court
M/S.Cholamandalam Investment And ... vs Mr.Yamani Ramakoteswararao on 8 September, 2025
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08.09.2025
CORAM
THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH
Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
M/s.Cholamandalam Investment and Finance Company Limited,
'Chola Crest', C 54 & 55, Super B-4,
Thiru Vi Ka Industrial Estate,
Guindy, Chennai - 600 032.
Represented by its
Authorised Signatory. .... Applicant in all applications
Vs.
Mr.Yamani Ramakoteswararao,
S/o.Narasimha Rao .... Respondent in all applications
PRAYER
Arb Appln No. 1049 of 2025
To direct the respondent to furnish security for the sum of
Rs.19,57,590.27 within a time fixed by this Hon'ble Court failing which
to order attachment of the immovable properties morefully described in
the schedule to the Judges Summons pending initiation & disposal of
arbitration proceedings between the applicant and the respondent and till
enforcement of the award that may be ultimately passed in the arbitration
proceedings and a copy of the attachment order be transmitted through
the Principal District & Sessions Judge Court at Gundur, District Court
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
Complex, Guntur District, Andhra Pradesh - 522 004 and the attachment
order may be hand delivered to the applicant for transmission.
Arb Appln No. 1050 of 2025
To direct the respondent to furnish security for the sum of
Rs.19,58,994.27 within a time fixed by this Hon'ble Court failing which
to order attachment of the immovable properties morefully described in
the schedule to the Judges Summons pending initiation & disposal of
arbitration proceedings between the applicant and the respondent and till
enforcement of the award that may be ultimately passed in the arbitration
proceedings and a copy of the attachment order be transmitted through
the Principal District & Sessions Judge Court at Gundur, District Court
Complex, Guntur District, Andhra Pradesh - 522 004 and the attachment
order may be hand delivered to the applicant for transmission.
Arb Appln No.1051 of 2025
To direct the respondent to furnish security for the sum of
Rs.19,51,667.27 within a time fixed by this Hon'ble Court failing which
to order attachment of the immovable properties morefully described in
the schedule to the Judges Summons pending initiation & disposal of
arbitration proceedings between the applicant and the respondent and till
enforcement of the award that may be ultimately passed in the arbitration
proceedings and a copy of the attachment order be transmitted through
the Principal District & Sessions Judge Court at Gundur, District Court
Complex, Guntur District, Andhra Pradesh - 522 004 and the attachment
order may be hand delivered to the applicant for transmission.
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
Arb Appln No.1053 of 2025
To direct the respondent to furnish security for the sum of
Rs.19,58,994.27 within a time fixed by this Hon'ble Court failing which
to order attachment of the immovable properties morefully described in
the schedule to the Judges Summons pending initiation & disposal of
arbitration proceedings between the applicant and the respondent and till
enforcement of the award that may be ultimately passed in the arbitration
proceedings and a copy of the attachment order be transmitted through
the Principal District & Sessions Judge Court at Gundur, District Court
Complex, Guntur District, Andhra Pradesh - 522 004 and the attachment
order may be hand delivered to the applicant for transmission.
For Applicant : Mr.D.Pradeep Kumar
[in all applns.]
For Respondent : No appearance
[in all applns.]
*****
COMMON ORDER
These applications have been filed against the common
respondent in all the applications for a direction to the respondent to
furnish security for the sum due and payable to the applicant in each
application, failing which, for attachment of the immovable property
described in the schedule(which is common in all the four applications).
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
2. The case of the applicant is that the respondent approached
the applicant for a financial facility for purchase of vehicle. Accordingly,
a loan agreement dated 24.09.2021 was entered into for a sum of
Rs.47,58,869/-.
3. This amount was repayable in 60 monthly installments
starting from 25.10.2021 and ends with 25.09.2026. The respondent
was liable to pay the additional financial charges in the event of
delay/default in payment of any of the installments.
4. The specific case of the applicant is that after the payment of
initial few installments, the respondent was irregular in making the
payment and turned out to be a chronic and wilful defaulter. Repeated
requests made by the applicant to pay the outstanding amount did not
yield any result. Thus, the respondent is due and payable the following
amounts:
S.No. Arb.Appln.Nos. sum due and payable
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
5. The applicant was in the process of initiating arbitration
proceedings pursuant to the specific arbitration clause contained in the
agreement. In the meantime, the applicant was attempting to get hold of
the vehicle, but however it was secreted by the respondent and the
applicant was not able to trace the vehicles. It is under these
circumstances, these applications have been filed before this Court for a
direction to the respondent to furnish security within the time fixed by
this Court, failing which, the applicant has sought for attachment of an
immovable property described in the schedule(which is common in all
the four applications).
6. The respondent has been served with notice and proof of
service has also been filed and the name of the respondent has been
printed in the cause list. There is no appearance either in person or
through a counsel.
7. This Court heard the learned counsel for the applicant in
each application and perused the materials available on record.
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
8. The materials placed before this Court clearly establishes the
fact that the respondent has availed the loan facility and has subsequently
defaulted in payment of instalments and virtually stopped paying any
amount. Hence, the respondent is due and payable against each of the
loan agreements.
9. The applicant has taken steps to trace the vehicles, for which
the financial facility was extended and the vehicles remained untraced.
10. Considering the conduct of the respondent and also
considering the fact that the respondent belongs to a different State viz.,
Andhra Pradesh, obviously the respondent is trying to evade the payment
of money and hence, the interest of the applicant has to be secured.
Considering the fact that the respondent has not even chosen to come
before this Court, no useful purpose will be served in ordering the
respondent to furnish security. Hence, this Court is inclined to order
attachment before judgment, the schedule property to ensure that there is
some security available for the applicant to proceed against the
respondent to recover the amount. It goes without saying that the
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
applicant will strictly comply with Section 9(2) of the Arbitration and
Conciliation Act,1996 [for brevity, hereinafter referred to as 'the Act']
insofar as commencing the arbitral proceedings.
11. In the light of the above discussions, there shall be an
attachment before judgment of the immovable property morefully
described in the judges summons pending the initiation and disposal of
the arbitral proceedings between the applicant and the respondent. If
ultimately, the respondent appear before learned Arbitrator to seek for
any modification by way of furnishing any security, it is left open to the
arbitrator to exercise the power under Section 17 of the Act and pass
appropriate orders on its own merits and in accordance with law.
12. Registry is directed to transmit this order to the Principal
District & Sessions Judge Court at Gundur, District Court Complex,
Andhra Pradesh and also communicate this order to the concerned SRO
to enable necessary entries to be made in the book maintained by the
SRO.
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Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
N.ANAND VENKATESH, J.
mp
13. In the result, all these applications are allowed in the above
terms.
08.09.2025
Neutral Citation:Yes/No
speaking order/non-speaking order
mp
Arbitration Application Nos.1049, 1050, 1051 & 1053 of 2025
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