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Kochhar & Co. successfully represented a leading global entity specializing in asset management and pallet services in a high-stakes dispute before the Hon’ble Bombay High Court. The Court granted a crucial ad-interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, ensuring the immediate protection and recovery of the Firm’s client’s/Petitioner’s assets.

The matter arose following the termination of a hire agreement, after which the Respondent unlawfully retained a substantial inventory of the Petitioner’s assets. Despite the termination, the Respondent failed to clear outstanding dues and sought to exploit the Petitioner’s proprietary assets for unauthorized commercial gain. Given the fragile and mobile nature of the assets, the Petitioner faced an imminent risk of irreparable commercial loss and damage to its supply chain operations.

A pivotal element of the Firm’s strategy was the extensive pre-litigation groundwork. Kochhar & Co. spearheaded a nationwide exercise to collate data and evidence from diverse delivery points across India. This meticulous on-ground documentation proved instrumental in demonstrating a strong prima facie case of misappropriation and malicious intent, ultimately convincing the Court of the need for urgent intervention.

Accepting the Firm’s submissions regarding the risk of asset depletion, the Hon’ble Bombay High Court passed an Order inter alia granting:

Appointment of Court Receiver: The Court Receiver, High Court of Bombay, was appointed with immediate authority to access the Respondent’s premises and take physical possession of the pallets.
Mandatory Documentation: To ensure transparency, the Court directed the Receiver to maintain a detailed account of the inventory through videography and photography.
Police Assistance: The Court granted the Receiver the liberty to seek necessary police assistance to ensure an unobstructed recovery process.

This Order serves as a vital instance for companies in the leasing and asset-management sectors. It reinforces the efficacy of Section 9 as a tool for “emergent risk mitigation” when proprietary assets are unlawfully withheld post-contract termination.

Kochhar & Co. team provided comprehensive counsel on litigation strategy, contractual enforcement and multi-jurisdictional evidence mobilization to safeguard the client’s commercial standing pending the commencement of arbitration.

The matter was handled by Mr. Mayur Shetty (Partner), Mr. Rushil Mathur (Associate Partner), Mr. Digant Bhatt (Senior Associate), Mr. Yash Pitroda (Senior Associate), Mr. Smit Solanki (Associate) and Ms. Amrita N. (Associate).