MOTOR AND GENERAL FINANCE LIMITED v. DELHI BUS SERVICE
1988-12-14
S.N.SAPRA
body1988
DigiLaw.ai
S. N. Sapra ( 1 ) BY this judgment I propose to dispose off a petition filed by petitioner under Section 20 of Arbitration Act, 1940 for filing arbitration agreement in court. ( 2 ) NOTICE was issued to respondents to show cause as to why arbitration agreement be not filed in court. ( 3 ) RESPONDENTS could not be served by means of ordinary process. However, respondents were served by means of substituted service by publication in the daily Statesman in its issue dated September, 15, 1988. Inspite of service respondents failed to appear. Vide order dated November 24, 1988 respondents were proceeded ex parte. Petitioner was directed to file affidavit by way of evidence. Same has been filed. ( 4 ) PETITIONER is a company duly incorporated under the Companies Act 1913. Petitioner company carries on the business of hire purchase of motor vehicles in different parts of the country. Mr. A K. Ahluwalia is the General Attorney of the petitioner company and is duly authorised to file and institute the present petition. ( 5 ) IN the petition it is alleged that vide a hire purchase agreement dated March 10, 1983, petitioner gave on hire to respondent No. 1 a motor vehicle bearing Engine No. 692-D03-0-21520, Chassis No. 344-050-0-20268 and Regd. No. DEP-2250. Respondent No. 2 guaranteed due performance of the agreement by respondent No. 1. ( 6 ) VIDE clause VI of the agreement, petitioner and respondents agreed to refer all the disputes and differences arising out of the agreement or any matter therein to the sole arbitration of Shri Inderjit Gulati Advocate, Delhi and in the event of his death, refusal, neglect, inability or incapability to act as an arbitrator to the sole arbitration of Shri Balkrishna Jain Advocate. ( 7 ) IN the petition it is further alleged that under the terms of the agreement, respondent No. 1 agreed to pay Rs. 88,500 in 12 monthly hire instalments. Respondents failed and neglected to pay the hire amount as agreed by them. Ultimately, the petitioner resumed possession of the vehicle and terminated the agreement by notice dated March 4, 1985. According to petitioner, respondent No. 1 paid only a sum of Rs. 10,000 towards hire money. ( 8 ) IN para 8 of the petition, petitioner has alleged that various disputes have arisen between the parties and same the are covered by the arbitration clause.
According to petitioner, respondent No. 1 paid only a sum of Rs. 10,000 towards hire money. ( 8 ) IN para 8 of the petition, petitioner has alleged that various disputes have arisen between the parties and same the are covered by the arbitration clause. ( 9 ) IN support of the allegations made in the petition. Mr. A. K. Ahluwalia has filed an affidavit by way of evidence. In the affidavit Mr. A. K. Ahluwalia has stated that he is the duly appointed general attorney of the petitioner company. Present petition is signed and verified by him. In the affidavit he has also alleged that a resolution was passed by the Board of Directors of the company. Copy of the resolution has been filed. Copy of the General Power of Attorney has also been filed. The original hire purchase agreement dated March 10, 1983 has been placed on record. Mr. Ahluwalia has deposed in the affidavit that the agreement is signed by respondents No. 1 and 2 and it is also signed by petitioner. Clause VI (a) of the agreement reads as under : "all disputes, differences, and or claims arising out of this Hire Purchase Agreement shall be settled by arbitration, in accordance with the provisions of the Indian Arbitration Act 1940, or any statutory amendments thereof and shall be referred to the sole arbitration of Shri Inderjit Gulati Advocate, Delhi or in case of his death, refusal, neglect, inability or incapability to act as an arbitrator to the sole arbitration of Shri Balkrishan Jain Advocate, Delhi. The reference to the arbitrators shall be within the clauses, terms and conditions of this agreement. The award given by the arbitrator shall be final and binding on all the parties concerned. " ( 10 ) I am of the view that the disputes as mentioned in the petition are covered by the arbitration clause. There exists a valid, binding and subsisting arbitration agreement between the parties. Moreover, inspite of service respondents have failed to show cause to the notice issued for filing of arbitration agreement in the court. Under the circumstances, I allow the petition and direct that. the arbitration agreement be filed in court. The disputes as mentioned in the petition be referred to the sole arbitration of Shri Inderjit Gulati Advocate. Petition is allowed, with no order as to costs.