{"id":145651,"date":"2002-08-29T00:00:00","date_gmt":"2002-08-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-installment-supply-ltd-vs-bellary-steels-and-alloys-ltd-on-29-august-2002"},"modified":"2018-10-14T07:06:54","modified_gmt":"2018-10-14T01:36:54","slug":"the-installment-supply-ltd-vs-bellary-steels-and-alloys-ltd-on-29-august-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-installment-supply-ltd-vs-bellary-steels-and-alloys-ltd-on-29-august-2002","title":{"rendered":"The Installment Supply Ltd. vs Bellary Steels And Alloys Ltd. on 29 August, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">The Installment Supply Ltd. vs Bellary Steels And Alloys Ltd. on 29 August, 2002<\/div>\n<div class=\"doc_author\">Author: S Mukerjee<\/div>\n<div class=\"doc_bench\">Bench: S Mukerjee<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>S. Mukerjee, J. <\/p>\n<p> 1. Vide order dated 16.8.2002, respondent was<br \/>\nproceeded ex parte.\n<\/p>\n<p> 2. The averments of the petitioner thus stand<br \/>\nunrebutted in relation to the petition under Section 9 of<br \/>\nthe Arbitration and Conciliation Act, 1996 which<br \/>\naverments of petitioner are also duly supported by an<br \/>\naffidavit and documents in relation to the following<br \/>\naspects which were highlighted in the first order of this<br \/>\nCourt dated 31.1.2002, relevant portion of the order<br \/>\nreads as under:\n<\/p>\n<p>&#8220;The Petitioner\/company entered into<br \/>\nan agreement with the Respondent\/company<br \/>\nand leased out plant and machinery\/assests<br \/>\nas described in para 7(e) of the petition.<br \/>\nThe respondent failed to pay the<br \/>\nInstallments of the lease rental. According<br \/>\nto the terms of the agreement, in the event<br \/>\nof default in payment of the rental the<br \/>\nPetitioner could declare the entire amount<br \/>\npayable under the agreement and agreement<br \/>\ncould be terminated. In this case the term<br \/>\nof lease has already expired. The<br \/>\npetitioner served a notice on the<br \/>\nRespondent demanding the outstanding rental<br \/>\nand the equipment. The Respondent did<br \/>\nreply to the notice but sought some time to<br \/>\narrange for the payment. They claimed that<br \/>\nthe company was in a financial crises. In<br \/>\nreply to the notice the Respondent stated<br \/>\nthat on account of recession in the steel<br \/>\nindustry the operation of the Electric Arc<br \/>\nFurnace was also suspended. Disputes<br \/>\nhaving arisen between the parties and there<br \/>\nbeing an arbitration clause in the<br \/>\nagreement, the petitioner invoked the<br \/>\narbitration clause by their communication<br \/>\ndated 23.1.2002 and appointed Mr. Abhinav<br \/>\nVashisht an arbitrator, requesting the<br \/>\nRespondent to appoint the second arbitrator<br \/>\nin terms of the agreement.\n<\/p>\n<p> The petitioner avers that the<br \/>\nmachinery is not being properly maintained<br \/>\nby the Respondent and if it is not kept<br \/>\nmaintained, it is likely to be damaged. In<br \/>\nany case, the lease period has already<br \/>\nexpired. Otherwise also under the<br \/>\nagreement since the Respondent has failed<br \/>\nto pay the lease rental, the petitioner has<br \/>\na right to take possession of the<br \/>\nequipment. The prayer is to appoint a<br \/>\nReceiver to take the possession of the<br \/>\nequipment and to hand over the same to the<br \/>\npetitioner on superdari.\n<\/p>\n<p> 3. Since by the same order dated 31.1.2002 Mr.<br \/>\nShellen Kumar Advocate was appointed as a Receiver and he<br \/>\nhas actually carried out the work assigned to him, it is<br \/>\nobvious that respondent, through its officials, is very<br \/>\nwell aware of the pendency of the proceedings and about<br \/>\nthe averments in the petition, as well as the aspects<br \/>\nhighlighted in the order dated 31.1.2002, and despite<br \/>\nknowledge has chosen not to contest or rebut the same.<br \/>\nThe only inference possible is that the respondent is not<br \/>\nin a position to rebut the averments.\n<\/p>\n<p> 4. The this view of the matter the petitioner is<br \/>\nclearly entitled to the relief claimed in the petition<br \/>\nconsidering both the un-rebutted averments of the<br \/>\npetitioner as well as the huge outstanding to the tune of<br \/>\nRs. 41,20,042\/-, and also the observations of learned<br \/>\nSingle Judge of this Court in the case of  Wipro<br \/>\nFinance Ltd. v. Dee Pharma Ltd.; reported in 86(2000)<br \/>\nDelhi Law Times 45 which reads as under :-\n<\/p>\n<p>  &#8220;12. The lease equipment belongs to the<br \/>\npetitioner. The respondent without making<br \/>\nthe payments due, not only the petitioner<br \/>\nis deprived of their property but a<br \/>\nvaluable security would be lost\/destroyed<br \/>\ndue to its use and by passage of time. In<br \/>\nthese circumstances, it is just, proper,<br \/>\nconvenient and expedient in the interest of<br \/>\njustice that a Receiver should be appointed<br \/>\nto seize and take possession of the<br \/>\naforesaid plant and machinery from the<br \/>\npossession of the respondent wherever it is<br \/>\navailable.&#8221;\n<\/p>\n<p> 5. In view of the above, I find that the case as made<br \/>\nout by the petitioner, warrants the appointment of a<br \/>\nReceiver under Section 9 of the Act, to take possession<br \/>\nof the leased plant and machinery\/ assets\/ equipment, and<br \/>\nfor the said purpose I direct the appointment of Shri<br \/>\nRishi Kapur, Manager of the petitioner company as a<br \/>\nReceiver for the purposes of this order allowing the<br \/>\npresent petition. He will stand duly authorised to seize<br \/>\nand take possession of the plant and machinery\/ assets\/<br \/>\nequipment in question as described in para 7(e) of the<br \/>\npetition being:-\n<\/p>\n<p>    SGCI ROLLS&#8217; <\/p>\n<p>485 MM XL 1300 1 mt<br \/>\n485 MM XL 760 5 mt<br \/>\n400 MM XL 1020 18 mt<\/p>\n<p> lying at the respondent&#8217;s premises at S-10\/11, Anantapur<br \/>\nRoad, Bellary 583101 (Karnataka), where it is stated to<br \/>\nbe lying, or from any other place where it may be found\/<br \/>\navailable.\n<\/p>\n<p> 6. The Receiver shall stand duly empowered to take<br \/>\nall necessary steps and actions for removal\/ detachment<br \/>\nof the said plant and equipment\/ assets from any<br \/>\nfastening in the foundation\/ floor and\/ or from any other<br \/>\nconnected machinery and equipment which may be other than<br \/>\nor beyond the leased plant and equipment.\n<\/p>\n<p> 7. The Receiver will be entitled to enter any<br \/>\npremises for the said purposes by opening or breaking of<br \/>\nany locks or doors\/ obstruction of any kind whatsoever.\n<\/p>\n<p> 8. The Receiver shall prepare an inventory of the<br \/>\nplant and equipment Along with accessories which are so<br \/>\nseized and removed from the said premises. The Receiver<br \/>\nwill obtain atleast five photographs from different<br \/>\nangles both before and after carrying out his functions.\n<\/p>\n<p> 9. The Receiver will be entitled to take away and\/ or<br \/>\nremove the said plant and equipment to any other premises<br \/>\nbelonging to the petitioner and will ensure that the said<br \/>\nplant and equipment\/ machinery\/ assets are properly<br \/>\npreserved by adopting all required means and measures for<br \/>\nensuring that the said plant and equipment\/ machinery\/<br \/>\nassets are kept safe both in the sense of remaining<br \/>\nintact and as regards the condition thereof at the time<br \/>\nof taking possession.\n<\/p>\n<p> 10. The Receiver will be entitled to avail the<br \/>\nassistance of the local police authorities, who will<br \/>\nextend necessary assistance and protection upon request<br \/>\nbeing made in that behalf by the Receiver. Upon<br \/>\nrelocating the plant and machinery\/ assets\/ equipment,<br \/>\nthe Receiver will inform this Court and the respondent<br \/>\nabout&#8217; the location and details of arrangements regarding<br \/>\nupkeep thereof including expenditure thereon.\n<\/p>\n<p> 11. The petition stands disposed of as allowed.<br \/>\nParties are however left to bear their own costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court The Installment Supply Ltd. vs Bellary Steels And Alloys Ltd. on 29 August, 2002 Author: S Mukerjee Bench: S Mukerjee JUDGMENT S. Mukerjee, J. 1. Vide order dated 16.8.2002, respondent was proceeded ex parte. 2. The averments of the petitioner thus stand unrebutted in relation to the petition under Section 9 of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-145651","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Installment Supply Ltd. vs Bellary Steels And Alloys Ltd. on 29 August, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-installment-supply-ltd-vs-bellary-steels-and-alloys-ltd-on-29-august-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Installment Supply Ltd. vs Bellary Steels And Alloys Ltd. on 29 August, 2002 - Free Judgements of Supreme Court &amp; 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