Raksons Leasing And Finance ... vs Kulbir Bhasin And Anr.
1996 Latest Caselaw 151 Del

JUDGMENT

Manmohan Sarin, J.

(1) The petitioner M/s. Raksons Leasing & Finance Limited Company have filed this petition under Section 20 of the Arbitration Act for directions for filing of the arbitration agreement containing in the lease agreement RLF/KBB/403/87 dated 18th April, 1987 and for reference of the disputes and claims enumerated in para 13 of the petition to the named Arbitrator.

(2) That the petitioner-Company vide the lease agreement dated 18th April, 1987hired a Maruti Van to the defendant No.1. The defendant No. 1, as per the terms of the lease agreement to pay lease rental of Rs. 2564.00 in thirty-six monthly instalments. Respondent No.2 had signed as a guarantor to the said agreement.

(3) Notices of the petition were issued to respondent No. 1 and respondent No. 2. The respondent No.l was served for 8th September, 1994 through his wife Mrs. Prema Bhasin and respondent No.l was served for 31st January, 1991 through his wife Mrs. Amita Bhasin. Inspite of service and repeated opportunities respondent Nos. 1 and 2 failed to put up appearance.

(4) In the event, the petitioners were directed to file affidavit by way of evidence. The petitioner has filed affidavit of the director of the petitioner- company, Mr. Anoop Khanna dated 8th Spetember, 1994. Affidavit of the Manager (Administration) Major Ved Vyas of the petitioner-Company dated 8th September, 1995 has also been filed. The petitioners have in addition filed additional affidavits dated 11th January, 1996 of Major Ved Vyas Manager (Administration) and of Col. D.P. Khanna Vice President of the petitioner-Company.

(5) The petitioner-Company by the aforesaid affidavits filed by way of evidence has proved the execution of the lease agreement dated 18th April, 1987. The said lease agreement contains an arbitration agreement providing for reference of disputes, differences and claims to the sole arbitration of the named Arbitrator Shri Badar D. Ahmed, Advocate, Delhi and in cases of his death, refusal neglect or incapacity to conduct the arbitration to the sole arbitration of Shri Parijat Sinha, Advocate.

(6) The petitioner has also proved the leasing of the Maruti Van bearing No. Dda 8216 under the said agreement. The petitioner-Company had paid the price of the said Maruti Van to the dealer. It is the petitioners' case that the respondent No.1 has been in breach of the agreement and failed to make payment of the lease rentals amounting to Rs. 51,607.00 . The petitioner-Company claims compensatory damages due to late payment. The cheques issued by the respondents have been dishonoured. The petitioner-Company claims that that the respondent No.l has got the vehicle registered in another name. In the additional affidavits it is averred that the respondent Nos. 1 and 2 inspite of repeated requests are not ready and willing to abide by the terms of the agreement. They are disputing the late payment charges and claim for damages.

(7) Having regard to the documents on record and affidavits by way of evidence, the petitioners have duly proved the existence of the arbitration agreement and disputes between the parties. The petitioners' claim are set out in paras 13(a) to (e) of the petition. These are as under :- (a) Lease Rentals due and payable defendants to the plaintiff but not paid. Rs. 51.607.00 (b) Late charges/damages for late payments of the lease rentals. Rs. 20,060 .00 (c) Return of Maruti Van or Rs. 65,000.00 being cost in lieu thereof. Rs. 65,000 .00 (d) Incidental charges including Insurance etc. Rs. 1,058 (e) Interest at the rate of 18% per annum from the date of the filing the present petition till the date of decision of the present petition.

(8)During the course of submissions learned Counsel for the petitioner very fairly agreed to the appointment of an independent Arbitrator by the Court provided the same would not be a precedent. I accordingly allow the petition and direct arbitration agreement to be filed. Shri Sanjay Krishan Kaul, Advocate is appointed the sole Arbitrator to adjudicate upon the disputes enumerated in para 13(a) to (e) of the petition. The fee of the Arbitrator is fixed at Rs. 6500.00 . The petition stands disposed of.