HARISH CHAND GUPTA Vs. ASHOK LEYLAND FINANCE

JUDGEMENT

(1.) This original petition is filed to set aside the award passed by the second respondent dated 18.4.2007.

(2.) The case of the petitioners is that on 22.1.2005, the first petitioner entered into an agreement of hire purchase with the first respondent company for a sum of Rs. 6 lakhs for the purchase of TATA vehicle bearing Engine No. AUZ 100930, Chassis No. AUZ 101653. The second petitioner stood as the guarantor in his personal capacity and executed the said agreement. According to the petitioners, as per the terms of agreement, the first petitioner has to repay the loan amount in 45 monthly instalments at the rate of Rs. 17,150/- per month from the first month to the 30th month and at the rate of Rs. 15,700/- per month from the 31st month to 45th month. According to the first petitioner, he paid 21 instalments and thereafter, due to his ill-ness, he could not use the vehicle and was unable to pay the due amounts. The time to pay the entire loan amount was available till 22.10.2008. The first petitioner surrendered the vehicle to the company at Sonbhadra in Uttar Pradesh State in the month of July, 2006 and according to the him, the balance payable was Rs. 2,85,000/-.

(3.) It is also stated in the petition that the first respondent informed the first petitioner while handing over possession of the vehicle, that the Manager of the first respondent can sell the vehicle for a sum of Rs. 5 lakhs and return back the excess, if any to the first petitioner and believing; the said promise, he returned to his native place. It is further stated that only after receiving the notice from the Execution Petition from the learned District and Sessions Judge, Sonbhadra, Uttar Pradesh, on 22.2.2008. he came to know about the passing of the arbitration award against the petitioners on 18.4.2007.