AMARJIT SINGH Vs. ARMOR FINANCE AND COMMERCE LTD

JUDGEMENT

(1.) THIS order shall also govern the disposal of FA No. 270/2002 as in both the cases parties and the dispute is one and the same. MA No. 368/2005 is against the order dated 25-09-2004 passed by VI ADJ, Indore in MJC No. 13/ 2004 whereby the application filed by appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (which shall be referred hereinafter as 'ac Act') was dismissed, while FA No. 270/2002 is against the order dated 04-03-2002 passed by VI ADJ, Indore in civil suit No. 1-A/2002 whereby the suit filed by appellants and the application filed under Section 34 of the AC Act was dismissed.

(2.) SHORT facts of the case are that respondent M/s. Armor Finance and Commerce Limited, Indore gave loan for purchase of Maruti 800 car to the tune of Rs. 1,91,000/- to deceased Gurudevsingh, whose legal representatives are appellants herein. The total amount was repayable in 24 installments along with interest for which 24 advance cheques were given by deceased Gurudevsingh and each of the cheque was amounting to Rs. 10,580/- The dispute arose between the parties as the amount was not paid in time. In the circumstance deceased gurudevsingh filed a suit for declaration and permanent injunction on 20-03-1996 before learned Court below wherein it was prayed that respondent be directed to hand-over the second key of the car and also the registration book. During pendency of the suit, the car was seized by respondent on 01-12-1997.

(3.) IN the said suit an objection was raised by respondent to the effect that as per the loan agreement between the parties in case any dispute arise, then, the matter has to be referred before Arbitrator, therefore, Civil Court has no jurisdiction. Vide order 25-03-1998 learned Court below directed the parties to appoint arbitrator to resolve the dispute and the suit was stayed till the passing of award. In compliance of the order passed by learned Court below vide order dated 05-05-1998 respondent appointed Mr. Ajay Bankada as arbitrator who has initiated the arbitration proceedings and passed the final award on 25-05-1999 whereby deceased Gurudevsingh held liable for payment of rs. 2,62,406/- along with interest @ 24% per annum. Since the civil suit was pending at the time when award was passed, therefore, on 25-06-1999 deceased gurudevsingh moved an application under Section 33 of the AC Act, whereby the validity of award was challenged. During pendency of the application and also the suit, another application was filed by deceased Gurudevsingh on 21-01-2000 under Section 34 of the AC Act in the suit itself. During pendency of both the applications filed by deceased Gurudevsingh i. e. , under Section 33 and 34 of the AC Act as well, deceased Gurudevsingh died on 04-09-2000. Vide order dated 04-03-2002 the applications filed by deceased Gurudevsingh under sections 33 and 34 of the AC Act and also the suit was dismissed against which the first appeal is filed by present appellants which is numbered as 270/2002. Thereafter appellants filed an application under Section 34 of the AC Act on 18-11-2002 wherein the validity of award dated 25-05-1999 is challenged. These proceedings were registered as MJC No. 13/2004. During pendency of these proceedings the car was sold in execution proceedings by learned Court below for a sum of Rs. 56,000/- on 09-09-2003. Thereafter, vide order dated 25-09-2004 learned Court below after hearing the respondent and also recording the evidence dismissed the application filed by appellants under Section 34 of the AC Act, against which the present appeal has been filed.