UMED SINGH Vs. M G F LIMITED

JUDGEMENT

(1.) Sh. Umed Singh had got a vehicle bearing No. HR-13-0187 on hire purchase basis through the respondent Motor & General Finance Limited in April, 1991. Total cost of the said vehicle was Rs. 2,05,000/-. He availed a finance of Rs. 1,25,000/-. This amount was to be repaid to the respondent in 23 equal installments of Rs. 7,300/- and these installments were inclusive of interest and other incidental charges. The petitioner made payment of 18 installments up to March, 1993. Unfortunately at that time the vehicle met with an accident which occurred on 21st March 1993. Since the earning of the petitioner Umed Singh was dependent on this vehicle, due to this accident his business came to standstill and his earnings got a severe beating. He, therefore, could not pay remaining five installments. The respondent re-possessed the vehicle, obtained claim from the insurance company and also sold the vehicle.

(2.) As Umed Singh died, his legal representatives have filed this petition under Section 11 of the Arbitration and Conciliation Act 1996 read with Section 8 thereof for appointment of an arbitrator. According to the petitioners, only five installments were due and thus, the total amount which remained to be paid was Rs. 7,300 x 5, i.e. Rs. 36,500. However, the respondent No. 1 received a sum of Rs. 88,000/- as claim from the insurance company and, thereafter, sold the vehicle for a consideration of Rs. 80,000/-. Therefore, according to the petitioners, the respondent should have paid the balance amount after adjusting the amount of remaining installments and as it was not done the following disputes have arisen:- (a) Whether after settling the a/cs in full and final settlement in whatever manner, the respondent was/is right in withholding the amount of deceased? (b) What amount was due to the respondent as on the date of resumption? (c) What amount has been adjusted in the account and under what law, manner and under clause of HPA? (d) If issue/point No. 1 is proved, to what amount of compensation etc. the applicants are entitled to? (e) To what amount, besides compensation, interest etc., the applicants are entitled to? (f) Whether the respondent has adjusted and settled the a/cs in proper, legal and appropriate way? If not, its effects? (g) Relief etc.?

(3.) It is averred that the enquiries have revealed that the respondent had entered into Hire-Purchase Agreement dated 18th April 1991 with Umed Singh which contains an arbitration clause. The petitioners have prayed for appointment of an independent arbitrator.