WIPRA FINACE LTD Vs. SRG INFOTECH LTD

JUDGEMENT

(1.) These three applications under Sections 7, 8 and 11 of the Arbitration and Conciliation Act, 1996 (in short 'the Act') are filed by the applicant for appointment of an arbitrator for the purpose of adjudicating the disputes, differences, claims and questions which have arisen between the parties, All the applications involve same question of law, to be decided under similar set of facts for sake of convenience, facts of Arb. P. No. 162/99 are noted.

(2.) The applicant is a non-banking financial company. In the year 1995 it agreed to grant lease finance for purchase of certain equipments to the respondent no.1, which is also a company incorporated under the Indian Companies Act. The lease agreement dated 29th March 1995 was entered into between the parties. Certain equipments, details whereof are given in para 7(d) were purchased and leased out to the respondent no.1. Respondent no.2, who is Chairman of respondent no.1-company stood guarantee for repayment of the amount and signed Deed of Guarantee. Respondent no.1 also executed demand promissory note for a sum of Rs.43,88,472/- which was forwarded to the applicant under the cover of its letter dated 31st March 1995. The equipment was installed by respondent no.1 at its premises at 10, Community Centre, East of Kailash New Delhi.

(3.) The term of the agreement was for a period of 36 months and monthly lease rentals for this period were to be given by respondent no.1 as per clause 4 of the agreement. It was also agreed in this agreement that the applicant would remain sole and exclusive owner of the leased equipment and right to use the equipment by the respondents was subject to payment of lease rentals with the stipulated regularity. Clause 23 of the agreements provides that if there is any 'default' on the part of the respondent no.1 in making payment of rentals or part thereof or in making other payments due under the agreement, the applicant could declare all sums due under the agreement as being immediately payable.