MFG INDIA LIMITED Vs. LAKSHMI CHAND CHOPRA

JUDGEMENT

(1.) The present petition is filed under Section 20 of the Indian Arbitration Act 1940 for filing the Arbitration Agreement- dated 30th March, 1991 in Court and for an order for reference of the disputes between the parties to the named Arbitrator therein Shri Shashi Vansh Bahadur, Advocate. The petitioner is a Company incorporated under the Indian Companies Act, 1913 and has its registered office at 17-B, Asaf Ali Road, New Delhi-110002. It carries on the business of hire purchase of motor vehicles. It is further stated that Shri Arun Mitter is the constituted Attorney and also a Principal Officer of the petitioner company and is duly authorised to sign and verify the pleadings and to institute this suit.

(2.) Respondent No. 1, it is stated, is in the business of sale of Auto Spare Parts and he entered into a Hire Purchase Agreement with the petitioner on March 30, 1991 for taking on Hire-purchase a vehicle being New Truck Model 1991 bearing Engine No. 692 D025 37137, Chassis No. 364 052 5 371 27 and Registration No. HR-42-0887. The petitioner on receipt of Proposal Form from respondent No. 1 as hirer and respondent No. 2 as guarantor hired the said Motor Vehicle to respondent No. 1 under the Hire Purchase Agreement bearing No. L-3846T12 dated March 30,1991 on the terms and conditions contained in the said agreement. The liability of the guarantor is alleged to be co-extensive with that of respondent no. 1 to the petitioner Company. The agreement stipulated that respondent No. 1 agreed to pay 34 hire instalments of Rs. 10,5000.00 each and the last one hire instalment of Rs. 9900.00 falling due on the 12th day of each month beginning from 12th June, 1991. Therefore the said respondent was given delivery/possession of the vehicle. The agreement is filed in Court today and is exhibited as P-1. The relevant clauses of the agreement are referred to in para 14 of the petition.

(3.) It is further stated that respondent No. 1 paid only a sum of Rs. 1,16,000.00 towards, Hire Money as against a sum of Rs. 3,66,900.00 payable by him under the above said agreement upto the date on which the agreement was terminated by the petitioner by notice dated 20th January, 1995. A balance of Rs. 2,55,900.00 was due and payable towards Hire Money and a sum of Rs. 2 lacs as additional hire purchase charges was also payable. The respondents have made themselves liable for liquidated damages of Rs. 50,000.00 . The petitioner overall claimed a sum of Rs. 5,05,900.00 . The averments are made in paragraphs 9 of the petition which may be reproduced as follows: