INDUS IND BANK LTD Vs. BALVINDER SINGH

JUDGEMENT

(1.) THIS appeal has been filed by the appellant against the order of the learned Single Judge dated 20th March 2007, by which Objections under section 34 of Arbitration and Conciliation Act, 1996 to the award of the arbitrator dated 25/3/2005 have been dismissed as barred by limitation.

(2.) THE facts giving rise to the present appeal are that M/s Ashok Leyland finance Ltd. and respondent herein entered into a hire purchase agreement dated 30th April 2000 by which a truck priced at Rs. 7,67,110. 00 bearing registration number HR-55 4424 was handed over to respondent by the said company on hire-purchase basis. As per the terms of the hire-purchase agreement between the parties, the appellant i. e. M/s Ashok Leyland finance Ltd. paid an amount of Rs. 6,50,000. 00 and respondent paid Rs. 1,17,110/- respectively to the manufacturer of the truck. The hiring instalments required to be paid by respondent were a sum of Rs. 21,900. 00 per month for a tenure of 35 months and Rs. 21,950. 00 for the last month. Thus, the respondent was required to pay a total sum of Rs. 7,88,450/- to m/s Ashok Leyland Finance Ltd. under the aforesaid agreement.

(3.) THE case of the appellant is that contrary to the terms of the agreement dated 30. 4. 2000, the respondent defaulted in payment of instalments and the advance cheques issued by him were dishonored. The agreement between the parties was terminated and M/s Ashok Leyland finance Ltd. took back possession of the vehicle on 16 June 2001 as per clause 8 (i) of the agreement and further sold it in 2001 to one Sh. Bhoom singh for a sum of Rs. 6,30,000/ -. Respondent disputed the same and sought the appointment of an arbitrator to arbitrate upon dispute raised by him.