INSTALMENT SUPPLY PRIVATE LIMITED Vs. S JOGINDER SINGH

JUDGEMENT

(1.) This is a petition filed under Section 20 of the Indian Arbitration Act, 1940 for filing of the arbitration agreement and for making a reference of the disputes between the parties to Shri Anand Kumar, Advocate.

(2.) The facts alleged are that petitioner (The Instalment Supply (P) Ltd.) carries on business of hire purchase of motor vehicles. Shri Krishan Bans Bahadur is the Managing Director of the petitioner. Joginder Singh as hirer and respondents 2 and 3 (Avtar Singh and Shiv Shankar) as guarantors made a proposal for hiring a Tata Diesel Truck Model 1984. The petitioner company accepted the proposal and the parties entered into a hire purchase agreement of 9/5/1984. Respondent no.1 agreed to take the vehicle on hire from the petitioner company and respondents 2 and 3 agreed to stand guarantee of respondent no.1.In terms of hire purchase agreement respondent no.1 agreed to pay 28 monthly instalment of hire money of Rs.6,000.00 and one of Rs.7,000.00 falling due on the 7th day of each month, the delivery of the vehicle was given.

(3.) In terms of the said hire purchase agreement respondents are stated to be jointly and severally bound to pay a sum of Rs. 1,10,266.00 on account of overdue hire instalments and to return the said vehicle in the same condition. According to clause 3 of the hire purchase agreement all questions and matter in difference between the parties including the other disputes had to be referred to the sole arbitration of any of the advocates named Anand Kumar, Sarveshwar Dayal and Ramesh Chand besides Virender Nath. Since disputes have arisen between the parties hence the present petition as such had been filed.