M G F INDIA LIMITED Vs. JASBEER SINGH

JUDGEMENT

(1.) This petition under Section 20 of the Arbitration Act has been filed on the allegations that the petitioner is a public limited company registered under the' Indian Companies Act, 1913, and is having its registered office at 17-B, Asaf Ali Road, New Delhi. Rajiv Gupta is the Director Incharge of the petitioner-company and is duly authorised to sign, verify, and file the petition. Petitioner-company is carying on the business of hire-purchase of motor vehicles and hired out a motor vehicle bearing Engine No. 245139, Chassis No. 755294 R.No.DDV 1796 to respondent No.1 under a hire-purchase agreement dated September 28, 1987 on the terms and conditions noted therein. Respondent No.1 signed hire-purchase agreement as hirer while respondent No.2 signed it as a guarantor for and behalf of respondent No.1. Liability of both the respondents are, thus, joint and several. It is further alleged that vide clause VI (a) of the aforesaid agreement setitioner and the respondents agreed that all disputes and differences and/or claims arising out of the agreement shall be referred to the arbitration in accordance with the provisions of the Indian Arbitration Act. They further agreed to appoint Shri Shashi Vansh Bahadur, Advocate, as their sole arbitrator and in case of his death, refusal, neglect or inability to act as an arbitrator, to the sole arbitration of Shri Inderjit Gulati, Advocate.

(2.) Aforesaid agreement was executed for a total sum of Rs. 1,03,546.00 including chassis value of Rs. 78,646.00, hire charges of Rs.20,000.00 and insurance charges of Rs. 4,900.00 for second and third year. At the time of execution of the aforementioned agreement respondent No.1 paid a sum of Rs.28,646.00 towards initial payment leaving a balance of Rs.74,900.00 to be paid in 30 monthly hires (29* 2500 and 1 * 2400) besides compensation and incidental charges which may fall due under the agreement. Hire instalments were to be paid on the first day of each English calender month. One of the terms of the aforementioned agreement dated September 28,1987 provides that the petitioner has a right to terminate the hiring and to retake possession of the vehicle in case of default committed by the hirer in payment of monthly'hire or part thereof or any other dues in terms of the agreement. It is stated that disputes on the following counts have arisen between the parties which are referable to the named arbitrator: i) Recovery of over due hire money upto the date of filing of the present petition. ..... 59,185/- ii) Compensation charges for late payment.. ....... 99,355/- iii) Return of the vehicle in question in the same order and condition in which it was hired out or in its absence its present market value. .... ...80,000/- iv) Recovery of double the amount of average monthly hire upto the date of the filing of the petition as provided in Schedule B to the agreement during Khe period respondent No.1 remains in adverse possession of the vehicle after termination of the hiring on the expiry of the payment of hire instalment mentioned in the agreement which expires on 1.3.90 ... ..1,45,000/- v) Further payment of compensation charges in terms of the agreement on the amount of arrears of hire money not paid after the filing of the present proceedings till the date of payment.

(3.) It was prayed that hire-purchase agreement dated September 28, 1987 be ordered to be filed in court and the disputes in question be referred to the sole arbitration of Sh.Shashi Vansh Bahadur, Advocate.