Research › Browse › Judgment

Delhi High Court · body

1988 DIGILAW 242 (DEL)

MOTOR AND GENERAL FINANCE LIMITED v. A. O. CHUMMAR

1988-09-14

C.L.CHAUDHRY

body1988
C. L. Chaudhry ( 1 ) THIS is a petition under Section 20 of the Arbitration Act seeking direction to the respondent to file the arbitration agreement in court and for reference of the disputes to the named arbitrator. It is alleged that by a hire-purchase agreement dated 5th October, 1982, the petitioner gave on hire to respondent No. 1 a motor vehicle of Tata make bearing Engine No. 692-DOI-7-56542, Chassis No. 344-073-7-53908 and Registration No. KRK. 2768 on the terms and conditions incorporated in the said agreement. Respondent No. 2 guaranteed the due performance of the agreement by respondent No. 1. The respondents have failed and neglected to pay the hire money as agreed to by them. The respondent has paid Rs. 97,100 towards the hire money and Rs. 5,900 towards compensation charges and Rs. 93,450 is due and payable as hire money and Rs. 21,787 is due towards compensation charges for late payment. In all the amount due is Rs. 1,15,237. This is besides the amount of Rs. 50,350 which are yet to fall due towards the instalments. Despite notice respondent No. 1 has not paid the amount. It is claimed that disputes have arisen between the parties and they are required to be referred to the arbitrator in terms of the arbitration clause under the hire-purchase agreement. ( 2 ) THE respondents were proceeded ex-parte by order dated 21st July, 1988. ( 3 ) THE petitioner has produced ex-parte evidence by way of affidavit of Shri A. K. Ahluwalia, General Attorney of the petitioner Company. In the affidavit, he has deposed that the petitioner company is duly incorporated company under the Companies Act and the Board of Directors has passed a resolution for filing the suit and he has been authorised to sign and verify the present proceedings in the court and the suit has been filed by him. He further deposed that respondent No. 1 entered into a hire-purchase agreement dated 6-10-1982 which contains an arbitration clause. The petitioner company gave on hire a motor vehicle bearing Engine No. 692-DOI-7-56,542, Chassis No. 344-073-7-53,908 and Registration No. KRK 2,768. The respondent No. 1 agreed to pay Rs. 2,40,900 in 47 hire instalments but he has paid Rs. 97,100 towards hire money and Rs. 5,900 towards compensation charges and the hire amount is due from him. The petitioner company gave on hire a motor vehicle bearing Engine No. 692-DOI-7-56,542, Chassis No. 344-073-7-53,908 and Registration No. KRK 2,768. The respondent No. 1 agreed to pay Rs. 2,40,900 in 47 hire instalments but he has paid Rs. 97,100 towards hire money and Rs. 5,900 towards compensation charges and the hire amount is due from him. As respondent No. 1 has committed breach of the hire-purchase agreement, the petitioner has a right to repossess the vehicle as per terms of the hire-purchase agreement. Respondent No. 2 signed the agreement as guarantor on behalf of respondent No. 1 and his liability under the agreement is co-extensive with respondent No. 1. The disputes are covered under the arbitration clause and are to be referred to the named arbitrator Shri Bal Krishan Jain, Advocate or Shri Inderjit Gulati, Advocate, Delhi. ( 4 ) I have considered the matter. In my opinion, the petition must be allowed. Case of the petitioner stands proved by the evidence placed on record. I have persued the arbitration clause. It provides that all disputes and differences or claim arising out of this agreement shall be settled by arbitration in accordance with the provision of Indian Arbitration Act or any statutory amendments thereof and shall be referred to the arbitration of Shri Bal Kishan Jain, Advocate or in case of his death or refusal or incapability to act as an arbitrator, to the sole arbitration of Shri Inderjit Gulati, Advocate, Delhi. I have also perused the disputes mentioned in para 5 of the petition. In my opinion, the disputes are covered under the Arbitration clause. ( 5 ) IN the result, the petition is allowed ex-parte. The petitioner is directed to file the agreement in court which they have already done and need not file again. The disputes mentioned in para 5 of the petition are referred to the sole arbitration of Shri Bal Kishan Jain, Advocate, for adjudication. The petition is disposed of.