MGF INDIA LIMITED Vs. RAJINDER SINGHAL

JUDGEMENT

(1.) . This is a petition under Section 20 of the Arbitration Act, 1940 seeking reference of disputes to the Arbitrator as named in the Lease Agreement dated 11th December, 1991. The facts as emerged in the petition are that the petitioner company purchased one Ashok Leyland Diesel engine at the instance of respondent No. 1 from M/s Sudhir Engineering Company on 2nd November, 1991 for a consideration of Rs. 3,64,000.

(2.) . The said equipment i.e. Ashok Leyland Diesel Engine complete with 125 KVA alternator and all standard accessories were leased out to respondent No. 1 and in consideration thereof a lease agreement dated 11.12.1991 was executed between the petitioner and the respondent No. 1. The respondent No. 2 stood as guarantor for respondent No. 1. The said equipment was given to the respondent No. 1 for a period of three years starting from 11.12.1991.

(3.) . Respondent No. 1 was to make payment of lease rentals at the rate of Rs. 12,600/- per month for 35 months besides payment of insurance and other incidental charges. According to the petitioner the total value of the lease agreement was Rs.4,52,000/-.