M/S. PKF FINANCE LIMITED Vs. LAKHWINDER SINGH

JUDGEMENT

(1.) The appellant company, having its head office at Jalandhar, indulging into business of hire purchase, entered into an agreement on 30.5.2003 with Lakhwinder Singh son of Sarwan Singh-respondent No. 1 (herein referred as, 'the respondent No. 1') in respect of the vehicle Swaraj Mazda, hiring it to respondents No. 1 and 2 on payment of total hire money of Rs. 7,43,242/-. Jharmal Singh, Satwinder Singh and Sucha Singh i.e. respondents No. 3 to 5 stood guarantors to indemnify all the claims of the claimant company against the hirer respondents No. 1 and 2. The respondents No. 1 and 2 agreed to return the purchase money in 47 monthly installments of Rs. 14,800/- each. Having defaulted in the installments, the appellants repossessed the vehicle on 16.3.2004 and issued a letter to Mr. O.N. Wahi, Advocate appointing him as an arbitrator and setting the claim of Rs. 95,502/- as on 30.2.2004, the details of which are given as under:-

(2.) After hearing the parties, the arbitrator passed an award on 28.2.2006, to the tune of Rs. 69,600/- as against the claimed amount of Rs. 95,502/-. The claim with regard to keeping of the vehicle in his premises was declined and the loss suffered by the company, after the sale of the vehicle, to the tune of Rs. 3,82,400/- was awarded. Thus, the arbitrator awarded a sum of Rs. 4,69,682/- along with interest @ 3% per month.

(3.) Here it may be noticed that in the arbitration reference, the appellant did not claim any amount regarding loss suffered by the appellant and also the interest @ 3% per month.