INDIAN LEASE DEVELOPMENT LIMITED Vs. SATISH KUMAR SINGH

JUDGEMENT

(1.) 'India Lease Development Ltd.', a Company incorporated under the provisions of the Indian Companies Act, 1913 (hereinafter referred to as 'the petitioner.') has filed the present petition under Section 20 of the Arbitration Act, 1940(hereinafter referred to as 'the Act'), praying that the 'Hire Purchase Agreement' dated the 7th September, 1988, containing an arbitration clause, be directed to be filed in the Court and the disputes mentioned in the petition be referred for decision to the sole arbitrator Shri Shashi Vansh Bahadur, Advocate, Delhi. It is averred that the petitioner entered into a Hire Purchase Agreement dated the 7th September, 1988 with respondents 1 & 2 whereby respondent No. 1 agreed to take a vehicle (a new Maruti Van, Model 1988, bearing chasis No. 779537, Engine No. 327137 and Registration No. DAE 1809) on hire from the petitioner Company and respondent No.2 agreed to stand as a guarantor for respondent No. 1 on the terms and conditions contained in the above said agreement. It is alleged that the liability of respondent No.2 in his capacity as guarantor, in terms of the above said agreement, is co-extensive with that of respondent No. 1 towards the petitioner Company. In terms of the above said Hire Purchase Agreement, respondent No. 1 agreed to pay 24 instalments of hire money (23 hire instalments each of Rs. 3,400.00 and the first instalment of Rs. 3,900.00) on 6th day of each month beginning from 7.10.88. It is alleged that respondent No. 1 was accordingly given delivery/possession of the above said vehicle.

(2.) It is further alleged that respondent No. 1 however has paid only a sum of Rs. 4,000.00 towards the hire money, leaving a balance of Rs. 78,100-. Respondent No. 1, as per the case of the petitioner, has also to pay Rs. 38,567.00 upto 15.2.91 as interest on delayed payment and incidental charges thus making a total of Rs. 1,16,667.00. It is alleged that in terms of the above said Hire Purchase Agreement both the respondents are jointly and severely bound to pay the above said sum of Rs. 1,16,667.00(calculated upto 15.2.91) and also to return the above said vehicle in the same order and condition in which the same was hired and in the event of their failure to do so to pay the estimated market value of the said vehicle amounting to Rs. 90,000.00 as also further hire money till such time the vehicle is returned to the petitioner Company.

(3.) It is further averred that according to Clause VI of the Hire Purchase Agreement all disputes/ differences and or claims arising out of the said Hire Purchase Agreement are to be settled by arbitration in accordance with the provisions of the Act and are to be referred to the sole arbitration of Shri Shashi Vansh Bahadur, Advocate, Delhi and failing him to Shri Surya Kant Singla, Advocate, Delhi. It has been prayed by the petitioner that the disputes having arisen between the parties be referred to sole arbitration of Shri Shashi Vansh Bahadur, Advocate, Delhi in terms of the Hire Purchase Agreement dated the 7th September, 1988.