SAHARA INDIA LIMITED Vs. JANAK PRASAD

JUDGEMENT

(1.) SHYAMPATI Devi, wife of Janak Prasad, the sole respondent herein entered into an agreement with Sahara India Limited, the sole appellant herein on 18.7.1986 under the terms and conditions of the scheme of the Company known as ''golden key account '' and was allotted account no. H -40022. Her husband was the nominee. She died on 26.8.1986. Her husband Janak Prasad applied for death help as per clause 13 of the terms and conditions of the Company's scheme whereby he as nominee of the deceased was entitled to interest free loan of Rs. 50,000/ - from the Company to be returned in instalments, which was rejected.

(2.) AS per Clause 14 of the terms and conditions aforesaid any dispute arising between the parties was to be decided through arbitrator. The dispute was, accordingly, referred to the sole arbitrator, appointed by the Company, who submitted his award on 16.9.1991, observing that claim of the deceased nominee was not legal and he was not entitled to get benefit of death help loan.

(3.) BY order dated 27.9.1993, learned Subordinate Judge, Bettiah was pleased to set aside the award and directed the parties to suggest the name of arbitrator for fresh award. Newly appointed arbitrator was directed to file his award on the basis of materials and evidence available on the record, which were produced before the previous arbitrator and directed to be put up on 7.10.1993 for suggesting the name of arbitrator.