PREMIER INVESTORS Vs. SK. ABDUL RASID AND ORS.

JUDGEMENT

(1.) This is an application by the hirers of a vehicle for setting aside the alleged sale of a vehicle by a Receiver and for recalling or modification of an order dated 2nd March, 1992. The vehicle's Registration Number is BR-IB/7199. M/s. Premier Investors entered into a hire purchase agreement with the hirers in respect of the vehicle on 6th Sept., 1990. As is usual, the possession of the vehicle was made over by Premier Investors (hereinafter referred to as the firm) to the hirers upon down payment of a certain sum. The balance amount due was payable in instalments. There is no dispute that the hirers committed default after making payment of some of the instalments. The hire purchase agreement provided for appointment of a sole Arbitrator. According to the hirers the sole Arbitrator was appointed without the consent of the hirers. An application under section 41 of the Arbitration Act, 1940 was made by the firm and an ex parte order was obtained appointing an Advocate as a Receiver. The Receiver seized the vehicle and kept it in the Chandpura Police Station, Dist. Vaishali in the State of Bihar. A settlement was arrived at between the parties on 25th Feb., 1992. The terms of the settlement were put in and an order was passed thereon by consent of the parties on 2nd March, 1992. It is this order that is sought to be recalled or modified.

(2.) Under the order dated 2nd March, 1992 the hirer was to pay an agreed amount in instalments. The Advocate Receiver was discharged and one Mr. Devi Prasad Ganguly was appointed Receiver and possession of the vehicle was made over to the hirers.

(3.) The hirers paid certain instalments but admit that default was committed in making of payment Rs. 1,16,990.00 which remained payable to the firm. According to the hirers a future payment of Rs. 38,000.00 had also been made (Rs. 30,000.00 by Demand Draft and Rs. 8,000.00 in cash) at the time of signing the terms of settlement.