GOODWILL INDIA LIMITED Vs. K F ABDUL JABBAR

JUDGEMENT

(1.) -This petition under Sec. 20 of the Arbitration Act, 1940 has been moved by the petitioner M/s. Goodwill India Ltd. Connaught Place, New Delhi. Respondent No. I K.F, Abdul Jabbar entered into a hire purchase agreement dated 14-9-1983 with the petitioner in respect of the truck in question and respondent no. 2 K.I. Sayed Mohamed signed this agreement as a guarantor of respondent No. 1. It is alleged that the hiring was for a total consideration of Rs. 2,69,295.00 and at the time of the execution of this agreement respondent No. 2 paid the initial hire money in the sum of Rs. 20.895.00 leaving a balance of Rs. 2,48,400.00 which balance amount was payable in 47 monthly hire instalments with effect from 13-11-1983. These instalments were of equal value except the last instalment which is the tune of Rs. 600.00 .

(2.) IT is alleged that defendant No. I made defaults in the payment of the hire instalments in terms of the schedule in spite of repeated notices and reminders and legal notice dated 18-6-1985. IT is further alleged that the petitioner was compelled to terminate the hire purchase agreement and resume possession of the vehicle in question which was not in the same order and condition in which it was hired. After taking possession of the vehicle in question the petitioner again served a notice dated 14-11-1985 to the respondent intimating to them about the termination of the contract of hiring and the resumption of the possession of the vehicle in question by the petitioner, and the respondents were called upon to pay over due hire money and compensation charges for late payment. The balance hire money is alleged to be to the tune of Rs. l,15,900.00 payable by the respondents to the petitioner. Another sum of Rs. 1,41,385.00 is also alleged to be due from the respondents to the petitioner on account of compensation charges for making late payments of the hire money. The respondents were called upon to pay these amounts and were further intimated that in case they disputed their liability to pay the same the disputes were to be referred to the named Arbitrator Shri Raj PalSagar, Advocate as per Clause 6 (a) of the hire purchase agreement. Respondents were proceeded ex parte.