KOTAK MAHINDRA PRIMUS LTD Vs. S LAXMANA RAO

JUDGEMENT

(1.) This Civil Revision Petition is directed against the order dated 05-01 -2004 passed in I.A.No. 2019 of 2002 in O.S.No. 3392 of 2002 on the file of the X Junior Civil Judge, City Civil Court, Hyderabad by which the learned X Junior Civil Judge dismissed the application filed by the defendant under Section 8 (1) of Arbitration and Conciliation Act, 1996 read with Section 151 C.P.C.

(2.) . The petitioner herein is defendant and the respondent herein is plaintiff in O.S. Mo. 3392 of 2002 on the file of the X Junior Civil Judge, City Civil Court, Hyderabad. The plaintiff is a borrower and the defendant is a lender. The defendant financed the plaintiff for purchase of a vehicle from OPEL showroom of M/s. ASCO MOBILE (P) LTD., under a loan agreement dated 07-09-2001. As per the terms of the loan agreement the plaintiff has to pay the loan amount in instalments and failure to pay any one of the instalments enables the lender to recall the entire amount due. Consequent on the failure of the plaintiff to pay certain instalments, the defendant seized the vehicle hypothecated to it by invoking clause 14 of the loan agreement. Questioning the seizure of the vehicle the plaintiff/borrower filed O.S.No. 3392 of 2002 seeking the following relief: (i) It is therefore prayed that the Hon'ble Court may be pleased to pass the judgment and decree for perpetual injunction be granted restraining the defendant, its agents, workers, servants and all acting through or under it from alienating or disposing of the suit vehicle to third parties; (ii) Costs of the suit be granted; (iii) Any other relief be granted to which plaintiff is legally entitled.

(3.) The defendant received the summons and filed I.A.No. 2019 of 2002 under Section 8 (1) of Arbitration and Conciliation Act, 1996 read with Section 151 C.P.C. to refer the dispute in the suit to Arbitrator as per the clause in the loan agreement.