TATA FINANCE LIMITED Vs. AJAYA KUMAR BISWAL

JUDGEMENT

(1.) Leave granted.

(2.) Heard learned counsel for the parties.

(3.) The appellant is Tata Finance Limited which had given the truck to the 1st respondent under a hire-purchase agreement dated 4/1/1995. Under the said agreement the respondent was to pay a sum of Rs. 15,000. 00 (fifteen thousand) per month as hire charges in addition to the additional deposit of rs 89,030. The regular and timely payment of hire charges was the essence of the contract and in the event of breach of any such payment the appellants were entitled to claim back the hired vehicle and also demand the balance money after giving due notice. It appears that the 1st respondent had committed breach of this agreement. Several cheques issued by him towards hire charges were dishonoured by the bankers due to insufficient funds in his account. Several letters were addressed by the appellant to the said respondent but the amounts were not paid. Finally on 5/9/1997 the appellant called upon the 1st respondent to pay a sum of Rs. 2 lakhs and 20 thousand which had become due and payable under the agreement or return the truck. After expiry of the said period under the letter dated 5/9/1997 and because of non-payment of hire charges by the 1st respondent, the appellant seized the vehicle. There doesn't seem to be any dispute that on 10/7/1998 the 1st respondent was liable to pay the outstanding hire charges of Rs. 2 lakhs and 20 thousand. The appellant in terms of the hire-purchase agreement referred the matter to the arbitrator on 1/12/1998 and the arbitrator has entered upon arbitration.