SUNDARAM FINANCE LTD Vs. SUKHDEV SINGH

JUDGEMENT

(1.) IN this revision petition filed under Article 227 of the Constitution of INdia by defendants no.1 and 2, order dated 30.03.2010 (Annexure P-4), passed by learned Civil Judge (Junior Division), Nabha, is under challenge. By the said order, application (Annexure P-2) moved by defendants no.1, 2 and 5 under Section 8 of the Arbitration and Conciliation Act, 1996 (in short - the Act) for referring the dispute to arbitration has been dismissed.

(2.) RESPONDENT no.1-plaintiff filed suit against petitioners and proforma respondents no.2 to 4. Plaintiff raised loan from the defendants for purchase of vehicle. Plaintiff in the suit claimed permanent injunction restraining the defendants from snatching the vehicle in question from the plaintiff.

(3.) PLAINTIFF, by filing reply to the application (Annexure P-3), resisted the application and alleged that injunction suit is the only efficacious remedy available to the plaintiff because the defendants threatened to take forcible possession of the vehicle. Learned trial court dismissed the defendants' application (Annexure P-2) observing that the suit does not fall under the arbitration clause as the plaintiff has no other efficacious remedy to restrain the defendants from illegally and forcibly snatching the vehicle from the plaintiff. Feeling aggrieved, defendants no.1 and 2 have approached this Court by way of the instant revision petition. None is appearing for respondents for the last several dates of hearing and even today, in spite of last opportunities. Consequently, I have heard learned counsel for the petitioners and perused the case file. Counsel for the petitioners contended that dispute raised by the C. R. No. 2515 of 2010 3 plaintiff in the suit is covered by arbitration clause no.22 contained in loan agreement (Annexure P-1) executed between the parties, and therefore, the dispute is liable to be referred to arbitration under Section 8 of the Act. Reliance in support of this contention has been placed on various judgments i.e. three judgments of Hon'ble Supreme Court namely Sukanya Holdings Pvt. Ltd. vs. Pandya and another reported as AIR 2003 Supreme Court 2252 (1), Hindustan Petroleum Corpn. Ltd. vs. M/s Pinkcity Midway Petroleums reported as AIR 2003 Supreme Court 2881 and The Branch Manager M/s Magma Leasing and Finance Limited and another vs. Potluri Madhavilata and another reported as 2009 (4) RCR (Civil) 900 and also two judgments passed by this Court i.e. M/s Magma Leasing Limited and another vs. Inder Pal Singh reported as (2010-1) The Punjab Law Reporter 774 and an unreported judgment in the case of M/s Sundram Finance Limited vs. Jaitun (Civil Revision No.4214 of 2005 - decided on 07.09.2009).