MOTOR AND GENERAL FINANCE LIMITED v. BOMBAY PULK CARRIERS
1986-01-02
M.K.CHAWLA
body1986
DigiLaw.ai
M. K. Chawla J. ( 1 ) THE petitioner Co. is engaged in the business of hire purchase of motor vehicles in different parts of the Union Territory of India. Sh. A. K. Ahluwalia is the general attorney of the petitioner Co. and is duly authorised to file and institute the present suit. As per the averments in the petition under Section 20 of the Arbitration Act, the case set up by the petitioner Co. , in brief, is that by an hire purchase agreement dated 9. 8. 80 the petitioner gave on hire to respondent No. 1 a Motor Vehicle bearing Engine No. AL1-98161, Chassis No. ALC-117436 and Regd. No. MMS- 1215 on clauses, terms and conditions mentioned in the agreement. Respondent No. 2 guaranteed the due performance of the said agreement by respondent No. 1 as mentioned in clause 5 of the said agreement. Vide clause 6 of the agreement, the petitioner and respondents 1 and 2 agreed to refer all questions and matters of differences touching the construction thereof or any act or thing in regard to the rights, duties and obligations of their enforcement or performance including the failure to pay the claim arising out of or relating to the said agreement to Sh. Shashi Vansh Bahadur Advocats, Delhi or in the event of his refusal or inability to act as an arbitrator to the sole arbitration of Shri Pal Krishan Jain, Advocate, Delhi. 1. That under the terms of the said agreement, respondent No. I agreed to pay Rs. 2,28,000. 00 in 35 monthly instalments as provided in schedule B of the said agreement. He also agreed to pay the monthly hire on or before 5th of each English calendar month, in addition to compensation charges and incidental expenses for defaults of late payments as per terms of the said That according to the terms and conditions of the said agreement the petitioner is the owner of the said vehicle and respondent No. 1 is in possession of the same only as a trustee and bailee, being the hirer, for and on behalf of the petitioner. That the respondents have failed and neglected to pay the hire amount as agreed by them and other incidental charges.
That the respondents have failed and neglected to pay the hire amount as agreed by them and other incidental charges. The petitioner called upon the respondents to surrender the said vehicle and also to pay the hire amount and other incidental charges but inspite of the service of the notice they have failed to comply with the requirements of the conditions of the agreement. Till today respondent No. 1 has only paid a sum of Rs. 38,000. 00 towards hire money, whereas Rs. 2,186. 00has been paid towards compensation charges. That now a sum of Rs. ll,000. 00is due towards hire money and a sum of Rs. 1,0650133- is due towards compensation charges for late payment. The total amount which is due to the petitioners from the respondents is Rs. 2,96. 033. 00. The disputes have arisen between the parties in respect of the over due hire money, compensation charges for late payment and the return of the vehicle to the petitioner together with damages caused to the said vehicle which arise out of the said agreement. Hence the present petition. ( 2 ) INSPITE of the best efforts but in by the petitioner, none of the respondents could be served by ordinary process as well as by registered A. D. post. Finally, the petitioner moved an application under Order 5 Rule 20 C. P,c. for the substituted service of the respondents, which application was allowed by the order of this Court dated 9. 7. 85. The respondents were ordered to be served by substituted service by publication in the Statesman, Bombay Edition. Both the respondents were served by publication in the Statesman, Bombay Edition, dated 4. 11. 85. As none on their behalf put in appearance, they were proceeded exparte. ( 3 ) THE petitioner has filed the affidavit of Sh. A. K. Ahluwalia, the general attorney of the petitioner Co. , by way of evidence. He has supported the petition in all material particulars- As per the averments in the affidavit, the respondents had signed the agreement in his presence when it was complete in all respect. In compliance with the terms and conditions of the agreement, respondent No. 1 paid a sum of Rs. 38,000. 00 towards hire money and a sum of Rs. 2,186. 00 towards compensation charges but later on failed and neglected to pay the remaining instalments as well as compensation charges etc.
In compliance with the terms and conditions of the agreement, respondent No. 1 paid a sum of Rs. 38,000. 00 towards hire money and a sum of Rs. 2,186. 00 towards compensation charges but later on failed and neglected to pay the remaining instalments as well as compensation charges etc. inspite of the service of the legal notice. The respondents have also not returned the vehicle which was given to them on hire. ( 4 ) I have heard the learned counsel for the petitioner and with his help gone through the record carefully. ( 5 ) THE hire purchase agreement bears the signatures of the proprietor of respondent No. 1 M/s. Bombay Pulk Carriers Sh. Charan Singh had also signed this agreement as guarantor. On behalf of the petitioner Co. the agreement is signed by the constituted attorney. I also find all the blanks were duly filled in at the time when the respondents had signed the agreement Under this agreement, the respondent No. 1 was required to pay a sum of Rs. 2,28,000. 00 in 35 instalments. The first instalment was of Rs. 7,000. 00 while the remaining 34 instalments were of Rs. 6,5008. 00each. After the execution of the agreement the respondent No. l was handed over the vehicle bearing Engine No. All-98961, Chassis No. ALC 117436 and Regd. No. MMS-1215 on hire basis. Respondent No. l did pay some of the instalments and compensation charges but later on failed and neglected to pay the remaining amount inspite of the service of the legal notice dated 23. 4. 84. The petitioner has also placed on record the statement of account showing the amount due from the respondents. The disputes mentioned in para 8 of the petition do arise out of the agreement and are required to be gone into as per the clause 6 of the agreement. ( 6 ) MR. A. K. Ahluwalia has been authorised to sign, verify and file the present petition for and on behalf of the petitioner Co. as per the copy of the resolution of the Board of Directors of the petitioner Co. passed by regulation on 2. 7. 77, the copy of which has been placed on record. The affidavit of Mr. A. K. Ahluwalia lends full support to the averments made in the main petition and there is no reason to disbelieve his affidavit.
as per the copy of the resolution of the Board of Directors of the petitioner Co. passed by regulation on 2. 7. 77, the copy of which has been placed on record. The affidavit of Mr. A. K. Ahluwalia lends full support to the averments made in the main petition and there is no reason to disbelieve his affidavit. ( 7 ) AS a result of the above discussion, I allow the petition and refer the matters enumerated in para 8 of the petition to the sole argitration of Shri Shashi Vans Bahadur Advocate. He is directed to enter upon the reference and make and publish the award within 4 months from the date he enters upon the reference. Petition allowed.