MOTOR AND GENERAL FINANCE LIMITED Vs. A O CHUMMAR

JUDGEMENT

(1.) JUDGMENT , J. (Oral).-

(2.) THIS is a petition under Section 20 of the Arbitration Act seeking direction to the respondent to file the arbitration agreement in court and for reference of the disputes to the named arbitrator. It is alleged that by a hire-purchase agreement dated 5th October, 1982, the petitioner gave on hire to respondent No. 1 a motor vehicle of Tata make bearing Engine No. 692-DOI-7-56542, Chassis No. 344-073-7-53908 and Registration No. KRK. 2768 on the terms and conditions incorporated in the said agreement. Respondent No. 2 guaranteed the due performance of the agreement by respondent No. 1. The respondents have failed and neglected to pay the hire money as agreed to by them. The respondent has paid Rs. 97,100 towards the hire money and Rs. 5,900 towards compensation charges and Rs. 93,450 is due and payable as hire money and Rs. 21,787 is due towards compensation charges for late payment. In all the amount due is Rs. 1,15,237. THIS is besides the amount of Rs. 50,350 which are yet to fall due towards the instalments. Despite notice respondent No. 1 has not paid the amount. It is claimed that disputes have arisen between the parties and they are required to be referred to the arbitrator in terms of the arbitration clause under the hire-purchase agreement.