MOTOR AND GENERAL FINANCE LIMITED Vs. T MOHAN

JUDGEMENT

(1.) JUDGEMENT (ORAL) , J.-

(2.) THIS application under section 20 of the Arbitration Act, 1940 has been filed by The Motor & General Finance Ltd. (the petitioner) stating that T. Mohan (respondent No. 1) had taken on hire from the petitioner motor vehicle registered as TMT 7099, Engine No. 692-D02-1-36993 and chassis No. 341-052-1-29871 under hire purchase agreement dated 7th June 1982 and respondent No. 2 guaranteed due performance of the terms of the said agreement. It is stated that in accordance with terms of the agreement, respondent No. 1 had agreed to pay monthly instalment of Rs. 6360.00 each for 35 months by 7th of each English calendar month and had also agreed to pay compensation charges and incidental expenses for defaults and late payment and in this way he had to pay Rs. 2,22,600.00 by way of hire in 35 instalments. It is stated that respondent No. 1 had paid only a sum of Rs. 43,980.00 towards hire money and a sum of Rs. 14,455.60 towards compensation charges and a sum of Rs. 1,78,620.00is due from him towards overdue hire charges and a sum of Rs. 18,370.40 is due from the respondents for late payment and other incidental charges. It has been pleaded that vide clause No. VI in the said agreement, the parties had agreed that in the event of disputes, the matter would be referred to the sole arbitration of Shri Inderjit Gulati, Advocate or in the event of his refusal or inability to act as an arbitrator, to the sole arbitration of Shri Bal Krishan Jain, Advocate, Delhi. It is stated that the following disputes have arisen between the parties:

(3.) IN the result, I allow the petition and direct that the arbitration agreement between the parties be filed in court. The disputes mentioned above as also those which might be raised by. the respondents and which are covered by the arbitration agreement, are referred to the sole arbitration of Shri INderjit Gulati, Advocate, Chamber No. 23, Tehsil Building, Tis Hazari Courts, Delhi who would give his award within four months from the date of his entering upon the reference or within such time which might be extended with the consent of the parties or under the orders of the court.