SRF FINANCE LIMITED Vs. FRIENDS GLOBLE TRAVELS

JUDGEMENT

(1.) The question to be determined in the present petition under Section 8 read with Section 11 of the Arbitration and Conciliation Act, 1996 is whether the Arbitration Clause between the parties stands exhausted and ineffectual, consequent upon the refusal of the named Arbitrator to act in terms thereof. The contract between the parties was for the hire of certain vehicles, the ownership of which vested with the Petitioner. It was only the payment of all the instalments by the Respondent to the Petitioner that the former could exercise the option to purchase the vehicle on further payment of its residual price.

(2.) The agreement inter alia, contains the following term, which both parlies agree, is the Arbitration Clause:

(3.) As the named Arbitrator had resigned from the service of the Petitioner/by his letter dated 31.12.1996 he conveyed to the Petitioner that he "will not be interested in being an Arbitrator for any of the disputes."