GULAM ABBAS Vs. MADHAV FINANCE CO

JUDGEMENT

(1.) THIS miscellaneous appeal has been filed by Gulam Abbas appellant against the judgment and decree dated 31st October, 1966, of the Senior Civil Judge, Ajmer, by which he made the award dated 19th April, 1964, filed by the arbitrator Shri Chiranjilal Garg a rule of the Court and passed a decree for Rs. 19933-50 in terms of the award in favour of Madhav Finance Company against Gulam Abbas. The judgment also provided for award of interest and costs and for payment of arbitrator's fees.

(2.) ON 3rd October, 1962, Madhav Finance Company presented an application to the said arbitrator that a hire purchase agreement was executed on 8th Oct. , 1959 by Zakir Hussain and Gulam Abbas, partners of M/s. Fakhri Motor Service and under that agreement the Company was entitled to receive Rs. 19934/-upto 3rd October, 1962, and interest thereafter and that under cl. 15 (b) of the said agreement, Shri Chiranjilal Garg was appointed an arbitrator to decide any dispute between the parties with regard to the matters contained in the said hire-purchase agreement and, therefore, the said arbitrator was to adjudicate upon the claim of the petitioner against Zakir Hussain Gulam Abbas with regard to the hire purchase agreement. The arbitrator gave notice to both Zakir Hussain and Gulam Abbas. Gulam Abbas took several objections before the arbitrator in which he stated that not a penny was due to the Company from him and that he was not a party to the hire-purchase agreement dated 8th October, 1959, or to any agreement whatsoever. He further stated that if Zakir Hussain had entered into any agreement with the Company, he was not in any way liable for that. The other contentions raised in the reply need not be mentioned. Zakir Hussain did not at all appear before the arbitrator.

(3.) IN the instant case the arbitrator himself proceeded to decide this matter which was illegal.