L vs. Venna Poosa Rama Nagendra Reddy S/O Pulla Reddy

ARBITRATION PETITION NO. 48 OF 2010

L & T Finance Limited .. Petitioner. V/s. Mr. Venna Poosa Rama Nagendra Reddy & another. .. Respondents. ---

Ms. Disha Karambar for the Petitioner.

CORAM : V. M. KANADE, J. DATED : 28TH JANUARY, 2010

P.C. :

1. Heard the learned counsel appearing on behalf of the Petitioner. None appears on behalf of the Respondents though they were served. The learned counsel for the Petitioner has filed affidavit of service.

2. Respondent Nos. 1 and 2 have taken a loan for purchasing equipments described at Exh. `F' to the petition on the loan-cumhypothecation basis and accordingly the Petitioner sanctioned the loan of Rs. 03,30,000/- and an agreement was executed between the parties on 05.03.2007. Respondent Nos. 1 and 2 however failed to pay the outstanding loan amount under the agreement and therefore the petitioner issued a demand-cum-termination notice dated 20.10.2009 and called upon the respondents to pay amount to the tune of Rs. 03,56,728/-. The plaintiff also sent a legal notice. However, the respondents have not paid the balance amount due and payable under the loan-cum- hypothecation basis. The petitioner, therefore, filed this petition under section 9 of the Arbitration Act.

3. Initially ad-interim relief was granted by this court in terms of prayer clause (c). The learned counsel for the petitioner, therefore, submits that since the respondents have failed to appear inspite of service of the notice, the plaintiffs are entitled to interim relief in terms of prayer clause (a).

4. The petition is accordingly disposed of.

(V.M.KANADE,J.)