ZAHEER BIN SALEH Vs. MOHAN AND MOHAN FINANCERS

JUDGEMENT

(1.) This revision is filed by the first defendant in O.S.No. 419/92 on the file of the V Additional Judge, City Civil Court, Hyderabad questioning the decree and judgment dt. 31-8-1995 by which the suit was decreed thereby making the award of the arbitrator dt. 17-3-1992 a rule of the Court.

(2.) The first respondent herein is the plaintiff in O. S. No. 419/92 and he filed the said suit against the present revision petitioner, who was the first defendant and also against the defendants 2 to 4 who are the respondents 2 to 4 herein and against the fifth defendant who is the arbitrator and who is shown as fifth respondent in this revision petition. The contention of the plaintiff, which is a finance company is that the first defendant obtained a loan of Rs. 90, 000/- by hypothecating a lorry on 23-11-1990 in its favour and the defendants 2 to 4 stood as guarantors for the said loan, that the defendants executed a hire-purchase agreement in favour of the plaintiff, that there is an arbitration clause in the said agreement as per which the disputes that arise between the parties to the agreement had to be referred to an arbitrator for settlement, that as disputes arose regarding discharge of the loan amount as per the hire-purchase agreement, the fifth defendant was named as arbitrator and the dispute was referred to him by the plaintiff for settlement, that the arbitrator subsequently passed award dt. 17-3-1992 and notice under Sec.l4(l) of the Arbitration Act was issued to all the parties and the said notice was served on the plaintiff on 17-3-1992 and that therefore the suit was filed under Sections 14 to 17 of the Arbitration Act, 1940 requesting the Court to direct the arbitrator to file the award into the Court and to make it a rule of the Court. The first defendant contested the suit mainly contending that he did not execute any hire-purchase agreement in favour of the plaintiff and such an agreement is a fabricated document, that the arbitrator has therefore no jurisdiction to enter into reference and pass award and such award passed by him is a nullity and that the suit shall therefore be dismissed. No oral or documentary evidence was adduced before the trial Court on behalf of either party. The award was filed into the Court by the arbitrator who is the fifth defendant in the suit along with the enclosures, and on the basis of such material and after hearing both sides the learned V Additional Judge, City Civil Court, Hyderabad decreed the suit having accepted the legality and validity of the award and made it a rule of the Court. Questioning such decree and judgment passed by the lower Court the present revision is filed by the first defendant.

(3.) Heard both the Counsel.