JOSE K VARGHESE (ALIAS) RAJAN Vs. ASHOK LEYLAND FINANCE LIMITED; T V PAUL, ARROR RE-ROLLING MILLS AND SRI N C VIJAYARAGHAVAN, ARBITRATOR

JUDGEMENT

(1.) This Tr.O.P. No. 428/2006 has been filed under Section 34 of the Arbitration and Conciliation Act, 1996, hereinafter called 'the Act', to set aside the award dated 9.2.2001 made by the 2rd respondent and directing the 1st respondent to pay the cost of this petition.

(2.) This O.P., has been filed by the petitioner who is the son of one K.R. Varghese who stood as guarantor to 2nd respondent herein in a hire purchase agreement dated 30.5.1995 entered into between respondents 1 and 2 in respect of Comet 1611/All vehicle bearing Regn. No. KLA.3135.

(3.) 2nd respondent as a hirer had to pay a total hire purchase money of Rs. 6,72,039/- in monthly instalments commencing from 30.5.1995 and ending on 29.5.1998. As 2nd respondent committed default, 1st respondent repossessed the vehicle and sold the same for Rs. 1,50,000/-. After adjustment of sale proceeds, there was a due of Rs. 2,13,667/- and therefore 1st respondent filed a claim statement before the 2 rd respondent arbitrator against 2nd respondent and the father of the petitioner, who was the guarantor. 2nd respondent-arbitrator by award dated 9.2.2001 directed the 2nd respondent and the petitioner herein to pay 1st respondent jointly and severally a sum of Rs. 2,54,231/- with simple interest at 18% per annum from 10.2.2001. Aggrieved by this award, the petitioner has filed the above O.P., under Section 34 of the Act, 1996.