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1994 DIGILAW 266 (DEL)

MOTOR AND GENERAL FINANCE LIMITED v. RADHA MOHAN SINGH

1994-04-22

J.K.MEHRA

body1994
J. K. Mehra ( 1 ) THIS is a petition under Section 20 of the Arbitration Act, 1940 filed the petitioner company against the respondents who had entered into ahire purchase agreement with the petitioner company. Respondent No. 1 is theprincipal lessee and respondents No. 2 and 3 are the guarantors for the payment ofthe hire-purchase installments. ( 2 ) ON filing of the petition, notices were issued to the respondents. Despiteservice, no one appeared on behalf of the respondents except on 14. 5. 1992 whenmr. Jeetesh Vikram appeared for Mr. H. P. Singh and stated that the power ofattorney and reply would be filed within six weeks. Thereafter neither any replyhas been filed nor any one appeared on behalf of the respondents and consequentlyon 3. 11. 1993, they were proceeded against ex-parte. The petitioner was directedto lead ex-parte evidence by way of affidavit. ( 3 ) PURSUANT to the said directions, the petitioner has filed an affidavits ofmr. A. K. Ahluwalia and Mr. K,l. Gosai, General Attorney and Accountant of thepetitioner company respectively. Exhibit P. W. I/i is the power of attorney infavour of Mr. A. K. Ahluwalia, authorising him to sign, verify and file the presentpetition. On a perusal of the aforesaid document, it is proved that Mr. A. . K. Ahluwaliahas the authority to file the present petition. Exhibit P. W. 2/1 is the hire purchaseagreement dated 5. 9. 1987 executed by the respondents with the petitioner. Exhibit P. W. 2/2 is the notice issued by the petitioner to the respondents callingupon them to make the payment outstanding in the hire purchase accounts. Exhibit P. W. 2/3 is the copy of the account maintained by the petitioner-companyin its ledger showing the amount due from the respondents under the hirepurchase agreement. ( 4 ) ON a perusal of Exhibit P. W. 2/1, it is seen that Clause VI contains anarbitration agreement between the parties and all disputes and differences arisingout of the said agreement shall be decided by the Arbitrator named therein. ( 5 ) AFTER perusing the documents placed on record and the averments madein the petition, I am satisfied that there is an arbitration agreement between theparties and there does exist dispute between the parties. Accordingly, I allow thepetition and direct the filing of the arbitration agreement in Court. ( 5 ) AFTER perusing the documents placed on record and the averments madein the petition, I am satisfied that there is an arbitration agreement between theparties and there does exist dispute between the parties. Accordingly, I allow thepetition and direct the filing of the arbitration agreement in Court. The disputesas mentioned in the petition be referred to the named Arbitrator as mentioned inclause VI of the Exhibit P. W. 2/1, namely, Mr. Inderjit Gulati, Advocate, Delhi. The Arbitrator shall publish his award within 4 months from the date of enteringupon the reference. The petition stands disposed of with no order as to costs.