Goodwill India Limited vs K.P. Abdul Jabbar And Anr.
1987 Latest Caselaw 538 Del

JUDGMENT

Jagdish Chandra, J.

(1) -THIS petition under Section 20 of the Arbitration Act, 1940 has been moved by the petitioner M/s. Goodwill India Ltd. Connaught Place, New Delhi. Respondent No. I K.F, Abdul Jabbar entered into a hire purchase agreement dated 14-9-1983 with the petitioner in respect of the truck in question and respondent no. 2 K.I. Sayed Mohamed signed this agreement as a guarantor of respondent No. 1. It is alleged that the hiring was for a total consideration of Rs. 2,69,295.00 and at the time of the execution of this agreement respondent No. 2 paid the initial hire money in the sum of Rs. 20.895.00 leaving a balance of Rs. 2,48,400.00 which balance amount was payable in 47 monthly hire Installments with effect from 13-11-1983. These Installments were of equal value except the last Installment which is the tune of Rs. 600.00 .

(2) It is alleged that defendant No. I made defaults in the payment of the hire Installments in terms of the schedule in spite of repeated notices and reminders and legal notice dated 18-6-1985. It is further alleged that the petitioner was compelled to terminate the hire purchase agreement and resume possession of the vehicle in question which was not in the same order and condition in which it was hired. After taking possession of the vehicle in question the petitioner again served a notice dated 14-11-1985 to the respondent intimating to them about the termination of the contract of hiring and the resumption of the possession of the vehicle in question by the petitioner, and the respondents were called upon to pay over due hire money and compensation charges for late payment. The balance hire money is alleged to be to the tune of Rs. l,15,900.00 payable by the respondents to the petitioner. Another sum of Rs. 1,41,385.00 is also alleged to be due from the respondents to the petitioner on account of compensation charges for making late payments of the hire money. The respondents were called upon to pay these amounts and were further intimated that in case they disputed their liability to pay the same the disputes were to be referred to the named Arbitrator Shri Raj PalSagar, Advocate as per Clause 6 (a) of the hire purchase agreement. Respondents were proceeded ex parte.

(3) The petitioner was directed to produce ex parte evidence by way of affidavits and only one affidavit deposed to by Shri Vishal Chand General Attorney of the petitioner-company was filed by the petitioner and the perusal thereof shows that it supports the various averments made in the petition. The perusal of the hire purchase agreement further bears out the averments in the petition and Clause Vi of the hire purchase agreement is arbitration clause according to which all disputes, differences and/or claims arising out of the hire purchase agreement shall be settled by arbitration, in accordance with the provisions of Indian Arbitration Act, 1940 or any statutory amendments thereof and shall be referred to the sole arbitration of Shri Raj Paul Sagar, Advocate, Delhi or in case of his death, refusal, neglect, incapability to act as an arbitrator to the sole arbitration of Sh. Inderjit Gulati, Advocate, Delhi.

(4) The disputes have arisen between the parties as already stated above and so as per the arbitration clause referred to above the same have to be referred to the named arbitrator.

(5) Consequently the petition is allowed and it is directed that the arbitration agreement be filed in court and the disputes and differences between the parties are now referred for decision to the sole arbitration of the named arbitrator Shri Raj Paul Sagar, Advocate, Delhi and in case of his death, refusal, neglect, incapability to act as arbitrator to the sole arbitration of the alternative named arbitrator Sh. Inderjit Gulati, Advocate, Delhi. A copy of the order be given Dusty to the petitioner for onward transmission to the arbitrator. -