FINANCE CENTRE Vs. RAM PARKASH

JUDGEMENT

(1.) THIS judgment will govern two Letters Patent Appeals Nos: 13 and 14 of 1976 filed against a common judgment of a learned Single Judge of this Court, Mian Jalal -ud -Din J,, who thereby set aside an award passed by the arbitrator on two applications under section 20 of the Jammu & Kashmir Arbitration Act (hereinafter referred to as the Act) being referred to him by the court. As common questions of law and facts are involved in both the appeals hence a common judgment. The facts leading up to these appeals may be briefly stated as below:

(2.) THE appellants filed two applications Nos: 92 and 93 of 1973 in this court against the respondents under section 20 of the Act on December 31, 1973. These applications were based upon twi separate Hire Purchase Agreements of even date i.e., April 14, 1972 between the appellant and the respondents in respect of two buses Nos: HPK -4067 and HPK -4063. Whereas Application No: 92 pertained to Bus No: HPK -4067. Application No: 93 pertained to Bus No: HPK -4063. Under both these agreements the petitioner according to it, had to finance the purchase of the said two buses which was going to be made by respondent No: 1 from Messrs Punjab Kashmir Finance Private Limited, Jullunder, and respondent No: 2 was the guarantor for repayment of the loan which the appellant had advanced to respondent No: 1 for purchase of the buses along -with the finance charges and interest chargeable on the principal sum advanced at the rate of 12 percent per annum. Another feature common to both the applications was that respondent No: 1, according to the appellant transferred his ownership in both the buses in favour of Messrs Kangra Valley Tourist Bus Service (hereinafter referred to as the Tourist Service). In application No: 92/73 the appellant in all claimed Rs. 59,703.00 from the respondents, i.e. Rs. 40,000.00 on account of principal sum, Rs. 14140.00 on account of interest, Rs. 3,600.00 on account o £ Finance Charges and Rs. 1,703.60 on account of Insurance charges. This amount was to be repaid in 36 monthly Instalments, the first instalment to fall due on June 1, 1972. Similarly in Application No: 93/73 the appellant claimed a total sum of Rs. 28,196.00 from the respondents i.e. Rs. 20,000.00 on account of principal sum, Rs. 6,000.00 on account of interest Rs. 1,500.00 on account of finance charges and Rs. 696.00 on account of insurance charges. This amount was to be repaid in 30 monthly instalments the first instalments to fall due in June 1, 1972. In case of any dispute between the parties touching their respective rights and liabilities under the aforesaid agreements, the same was to be referred to one Om Prakash Bomba, a named arbitrator in terms of Clause 27 which was identical in both the agreements.

(3.) RESPONDENT No: 2 did not appear despite service in both the cases and was therefore proceeded exparte.