JUDGMENT
C.M. Nayar, J.
(1) The present petition is filed under Section 20 of the Indian Arbitration Act, 1940 for filing the Arbitration Agreement dated 14th November, 1983 in Court and for an order for reference of the disputes between the parties to the named Arbitrator therein Shri Inderjit Gulati, Advocate.
(2) The petitioner is a Company incorporated under the Indian Companies Act, 1956, and has its registered office at 17-B, Asaf Ali Road, New Delhi-110002. It carries on the business of hire purchase of motor vehicles. It is further stated that Shri A.K. Ahluwalia is the General Attorney of the petitioner-Company and is duly authorised to sign and verify the pleadings and to institute this suit.
(3) The petitioner, it is stated, on 14th November, 1983 on receipt of proposal from respondent No. 1 as hirer and respondent No. 2 as guarantor for hiring a Tata Diesel Truck Model 1993 bearing Engine No. 692-D01-7-76870, chassis No. 344-073- 7-73734; and Registration No. KEF-7048 executed a Hire Purchase Agreement. By this agreement respondent No. 1 agreed to take the said vehicle on hire from the petitioner-Company and respondent No. 2 agreed to stand guarantee for respondent No. 1 on the terms and conditions contained in the said agreement. The liability of the guarantor is alleged to be co-extensive with that of respondent No. 1 to the petitioner-Company. The agreement stipulated that respondent No. 1 agreed to pay 47 instalments of hire money 46 hire instalments of Rs. 50,00.00 each and the last one hire instalment of Rs. 2,200.00 falling due on the 8th day of each month beginning from 8th January, 1984. Therefore the said respondent was given delivery / possession of the vehicle. The agreement is filed with the petition and is exhibited as Public Witness – 2/1. The relevant clauses of the agreement are referred to in para 4 of the petition.
(4) The broad facts are that respondent No. 1 paid only a sum of Rs. 1,00,000.00 towards Hire Money as against a sum of Rs. 2,32,200.00 payable by him under the above said agreement upto the date on which the agreement was terminated by the petitioner by notice dated 8th July, 1988. A balance of Rs. 132,2007- was due and payable towards Hire Money and a sum of Rs. 93.607.00 as incidental expenses was also payable. The petitioner overall claimed a sum of Rs. 2,25,807.00 . The averments are made in paragraphs 5 & 6 of the petition which may be reproduced as follows:
“5. The respondent No. 1, however, paid only a sum Rs. l,00,000.00 towards Hire Money as against the sum of Rs. 2,32,200.00 towards Hire Money payable, leaving a balance of Rs. l,32,200.00 , payable as Hire Money and a sum of Rs. 93,607 .00 as incidental expenses on the said date, making a total of Rs. 2,25,807.00 .” 6. The petitioner-Company thereafter by Registered Notice dated 8-7-88 issued to the respondents terminated the hire of the said vehicle and called upon the respondents to pay a total sum of Rs. 2,25,807.00 being the total of the hire money, interest on overdue instalments and incidental expenses calculate upto 8-6-88 and to return the said Vehicle No. KEF-7048 to the petitioner failing which the petitioner would take appropriate steps to enforce its rights against the respondents under the said Agreement by way of arbitration or otherwise.”
(5) The petitioner consequently issued notice dated 8th July, 1988 and on failure of respondent No. 1 to pay the money and to return the vehicle to the petitioner asked for settlement of the disputes by way of arbitration as admittedly the disputes had arisen between the parties. The arbitration clause as referred to in the Agreement reads as follows:
“CLAUSE Vl-(a). All disputes, differences, and or claims, arising out of this Hire Purchase Agreement shall be settled by arbitration, in accordance with the provisions of the Indian Arbitration Act, 1940, or any statutory amendments thereof and shall be referred to the Sole Arbitration of Shri Inderjit Gulati, Advocate, Delhi or in case of his death, refusal, neglect, inability, or incapability to act as an Arbitrator to the sole arbitration of Shri Baikrishan Jain Advocate Delhi. The reference to the Arbitrators shall be within the Clauses, Terms And Conditions of this Agreement. The award given by the Arbitrator shall be final and binding on all the parties concerned. (b) It has been expressly explained by the owners to the hirer and to the guarantor that either of this aforementioned Arbitrators are usually appointed by the owners in the hire purchase agreements accepted by them and inspite of the information supplied to them, the said hirer and guarantor willingly agreed to the nomination of the said Arbitrator/s, and they shall not raise any objection against the appointment of any one of the Arbitrator / s on the ground that the Arbitrator is/are connected in any manner, with the owners. (c) Any party desirous of making a reference to the Arbitrator, shall give fifteen days’ Registered Ack. Due Notice of his intention to do so, to the other party at his usual place of business or residence, or the place of their last notified address and the notice shall be deemed to have been served when it would ordinarily have been delivered by post. The notice sent by the Arbitrator, to the parties, by Registered Post, at the address mentioned in the Hire Purchase Agreement, will be considered sufficient service on the parties, whether such notice is received by them or not, or is refused, or is returned undelivered.”
(6) Notice of the petition was issued to the respondents on 6th April, 1989 and the learned Counsel for the petitioner has stated that the petitioner has already taken possession of the vehicle. The respondents were duly served and as they did not put in appearance they were directed to be proceeded ex-parte on September 8,1994 and the petitioner was directed to file affidavit by way of evidence. The said affidavit has since been filed and the averments made in the petition are reiterated.
(7) In view of the above facts this petition is allowed and the disputes which have arisen between the parties as referred to in the petition are hereby referred to the arbitration of Shri Inderjit Gulati, Advocate in the manner as provided in clause Vi of the Agreement. The Arbitrator shall render his Award within the statutory period. There will be no order as to costs.