SETHIA TRADERS Vs. TATA FINANCE LTD

JUDGEMENT

(1.) THE Respondents pursuant to an agreement had given on hire purchase a vehicle to the Petitioners. The said vehicle was burnt in an accident. As the Petitioners failed to pay the amount due in terms of the agreement, matter was referred to an Arbitrator. The Arbitrator by an Award dated 14th December, 1995 awarded an amount of Rs.1,01,213/- which consisted Rs.70,231/- as arrears of monthly hire charges and additional finance charges of Rs.40,282/- less insurance premium of Rs.9,300/- with interest and costs as set out in the Award.

(2.) IN the claim statement filed by the Respondents they had claimed an amount of Rs.1,01,213/- being Rs.70,231/- as arrears of monthly hire charges and Rs.40,282/- being additional finance charges (wrongly typed as Rs.6.40.282/-. This is borne out from Exhibit 'B' wherein reference is made to Particulars of Claim.) Interest was also claimed at 30%. I have already referred above as to the amount awarded and as so far as the interest is concerned the learned Arbitrator awarded the same at the rate of 18% on the amount of Rs.70,231/- only.

(3.) THE question is as to what is the date when the Arbitrator applied his mind. The submission on behalf of the Petitioners is that the Arbitrator himself in his award has set out that he entered on reference on 9th March, 1995 and as such that should be the date. However, in the very next paragraph the Arbitrator has mentioned that on 11th April, 1993 the claimants filed their written statement (claim statement) and that Respondents were given time to file their counter claim which they did on 28th June,1995 alongwith their reply. It is thereafter mentioned that on 8th September, 1993 the matter was partly heard. Considering these two dates, the controversy in issue will have to be decided. In Ramanath Aggarwalla (Supra) two issues referred to the full Bench of the Calcutta High Court as set out in Para 8 of the Judgment are as under: