M G F INDIA LIMITED Vs. SATISH GROVER

JUDGEMENT

(1.) The petitioner, name above, has filed the present petition under Section 20 of the Arbitration Act, 1940 ( hereinafter referred to as the `the Act'), averring that the petitioner is a Public Limited Company, duly incorporated under the provisions of the Companies Act 1913, having its Registered Office at 17- B, Asaf Ali Road, New Delhi and Shri Rajiv Gupta, Director-in-Charge and Constituted Attorney of the petitioner company is duly authorised to sign and verify the present petition and to institute the present proceedings on behalf of the petitioner company.

(2.) It is averred that the petitioner company is carrying on the business of hire purchase of motor vehicles at its Registered Office, situated at 17-B, Asaf Ali Road, New Delhi. It is further stated that the petitioner, in due course of its business purchased one Maruti Car (Deluxe), bearing Engine No. 249503; Chassis No. 184866 and Registration No. DDU 814 from M/s Competent Motors, New Delhi vide the Invoice dated the 16th October, 1987 and thereafter hired out the above said car to respondent No.1 under Hire Purchase Agreement dated the 19th October, 1987 on the terms and conditions mentioned therein. It is stated that respondent No.1 signed the above said Agreement of Hire Purchase as hirer and respondent No. 2 signed the same as guarantor for and on behalf of respondent No.1 and hence the liability of the respondents is joint and several. It is stated that the above said Hire Purchase Agreement was duly executed between the petitioner and the respondents at the Registered Office of the petitioner company situated at 17-B, Asaf Ali Road, New Delhi. It was agreed that all disputes/differences and/or claims arising out of the said Hire Purchase Agreement shall be referred to the arbitration in accordance with the provisions of the Act. It is further stated that in terms of the provisions of Clause-VI(a) of the above said Agreement, the parties agreed to appoint Shri Shashi Vansh Bahadur, Advocate, Delhi as their sole arbitrator for the purpose of adjudicating the disputes/differences between the parties and in case of his death, refusal, neglect, inability or incapability to act as an arbitrator, then to the sole arbitration of Shri Inderjit Gulati, Advocate, Delhi.

(3.) It is stated that the above said Hire Purchase Agreement was executed for a total sum of Rs.1,25,520.00 which included the price of the car at Rs.1,12,720.00 and the hire charges, amounting to Rs.12,800.00 for 12 months. At the time of the execution of the above said Agreement, respondent No.1 paid a sum of Rs.32,720.00 as an initial payment, leaving a balance of Rs. 92,800.00 to be paid in 12 monthly hires, first payment to be made on 19.11.1987 in the sum of Rs.8100.00 and the balance 11 instalments being of Rs.7700.00 each, as per Schedule `B' annexed to the said Agreement, besides compensation charges and incidental charges which may fall due under the above said Agreement. The above said hire instalments were to be paid on 19th day of each English Calendar month.