SUNIL KUMAR SINGHAL SON OF SRIRAM SINGHAL AND SRI RAM SINGHAL SON OF LALA VISHAMBHAR SAHAI Vs. VINOD KUMAR SON OF LALA GOPI CHAND, PROPRIETOR, VINOD FINANCER

JUDGEMENT

(1.) THIS is an appeal under Section 39 of the Arbitration Act, 1940 against the order dated 6 -4 -1985 passed by Civil Judge III Meerut in O.S. No. 310 of 1978.

(2.) VINOD Kumar the respondent herein, filed an application under Section 20 of the Arbitration Act for referring the dispute having arisen between the parties to an arbitrator as per the arbitration Clause incorporated in hire purchase agreement dated 23 -5 -1975. The application was filed on the pleas inter alia that the plaintiff is carrying on finance business under the name and style of 'M/S Vinod Financier' in proprietorship. He advanced a sum of Rs. 36,000/ - as finance to the defendant No. 1 in pursuance of the hire purchase agreement dated 23 -5 -1975. Sri Ram Singhal the appellant No. 2 herein, stood gurantor for repayment of the loan. The money was to be repaid in 24 monthly installments of Rs. 1,500/ -. According to the plaintiff, the defendant No. 1 failed to repay the amount as per the terms of the hire purchase agreement. Consequently, he sought to refer the dispute to the sole Arbitrator, Prem Shanker Kapoor, Advocate or his nominee, but the defendant No. 1 refused to accept Sri Ram Shanker Kapoor as Arbitrator. Hence, the application under Section 20 of the Arbitration Act, 1940 was filed.

(3.) ON the pleadings of the parties, following issues were framed: