{"id":217420,"date":"2009-07-13T00:00:00","date_gmt":"2009-07-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shriram-transport-finance-vs-jasbir-singh-jasveer-singh-on-13-july-2009"},"modified":"2019-01-11T06:03:52","modified_gmt":"2019-01-11T00:33:52","slug":"shriram-transport-finance-vs-jasbir-singh-jasveer-singh-on-13-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shriram-transport-finance-vs-jasbir-singh-jasveer-singh-on-13-july-2009","title":{"rendered":"Shriram Transport Finance &#8230; vs Jasbir Singh @ Jasveer Singh on 13 July, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">Shriram Transport Finance &#8230; vs Jasbir Singh @ Jasveer Singh on 13 July, 2009<\/div>\n<pre>Civil Revision No.5602 of 2008                               1\n\n\n\n      In the High Court of Punjab and Haryana at Chandigarh\n\n\n                         Civil Revision No.5602 of 2008\n                         Date of decision: 13.7. 2009\n\n\nShriram Transport Finance Co.Ltd. and another\n\n                                                         ......petitioners\n\n                         Versus\n\n\nJasbir Singh @ Jasveer Singh\n\n                                                      .......Respondent\n\n\nCORAM: HON'BLE MRS. JUSTICE SABINA\n\n\nPresent:     Mr.V.K.Sandhir, Advocate.\n             for the petitioner.\n\n             Mr.Raman Walia, Advocate,\n             for the respondent.\n                   ****\n\n\nSABINA, J.\n<\/pre>\n<p>             The petitioners have filed this petition under Article 227 of<\/p>\n<p>the Constitution of India for quashing of order dated 11.9.2008<\/p>\n<p>(Annexure P-5) passed by the Civil Judge, (Jr.Divn.) Ludhiana, vide<\/p>\n<p>which application under Section 8 read with Section 5 of the<\/p>\n<p>Arbitration and Conciliation Act, 1996 (for short &#8216;the Act&#8217;) was<\/p>\n<p>dismissed.\n<\/p>\n<p>             The case of the plaintiff-respondent, in brief, is that<br \/>\n<span class=\"hidden_text\"> Civil Revision No.5602 of 2008                            2<\/span><\/p>\n<p>defendant-petitioners   were running the business of finance of<\/p>\n<p>vehicles in Ludhiana. Plaintiff wanted to purchase new truck and,<\/p>\n<p>hence, approached the defendants for advancement of loan. Vide<\/p>\n<p>agreement dated 10.2.2007, loan was advanced to the plaintiff by the<\/p>\n<p>defendants for purchase of truck in question. The plaintiff had repaid<\/p>\n<p>the entire loan amount. Thereafter, the plaintiff again approached<\/p>\n<p>the defendants for loan of Rs.1,30,000\/- against the said truck. The<\/p>\n<p>defendants obtained the signatures of the plaintiff on various printed<\/p>\n<p>forms and blank stamps. First instalment of Rs.10,000\/- was paid by<\/p>\n<p>the plaintiff on 29.2.2007.      Up to 23.11.2007, plaintiff repaid<\/p>\n<p>Rs.49,000\/- to the defendants against the loan amount. In the month<\/p>\n<p>of June, 2008, plaintiff approached the defendants and demanded<\/p>\n<p>statement of account but he was not supplied with the same. On<\/p>\n<p>19.7.2008 the vehicle in question, which was coming from Delhi to<\/p>\n<p>Ludhiana loaded with scrap worth Rs.3,00,000\/-, was taken by the<\/p>\n<p>musclemen of the defendants.\n<\/p>\n<p>           The plaintiff filed a suit for mandatory injunction directing<\/p>\n<p>the defendants to hand over the truck bearing registration No. HR 38-<\/p>\n<p>C 2431 along with scrap worth Rs.3,00,000\/-, which was taken away<\/p>\n<p>by the musclemen of the defendants illegally on 19.7.2008. Notice of<\/p>\n<p>the suit was issued to the defendants. An application under Section 8<\/p>\n<p>read with Section 5 of the Act was filed by the defendants praying<\/p>\n<p>that the case be referred to the Arbitrator for arbitration. Vide the<\/p>\n<p>impugned order Annexure P-5, the said application was dismissed<br \/>\n<span class=\"hidden_text\"> Civil Revision No.5602 of 2008                              3<\/span><\/p>\n<p>by the trial Court. Hence, the present revision petition.<\/p>\n<p>            Learned counsel for the petitioners has submitted that in<\/p>\n<p>terms of Article 10.14 of the agreement dated 10.2.2007 (Annexure<\/p>\n<p>P-3), the trial Court was bound to refer the dispute arising between<\/p>\n<p>the parties to the Arbitrator. In support of his arguments, learned<\/p>\n<p>counsel has placed reliance on the decision of the Apex Court in<\/p>\n<p><a href=\"\/doc\/187956\/\">Rashtriya Ispat Nigam Limited v. M\/s Verma Transport Company<\/p>\n<p>(SC)<\/a> 2006 (4) RCR (Civil) 478, wherein it was held as under:-<\/p>\n<blockquote><p>            &#8220;15. Section 8 confers a power on the judicial authority.<\/p>\n<p>            He must refer the dispute which is the subject matter of<\/p>\n<p>            an arbitration agreement if an action is pending before<\/p>\n<p>            him, subject to the fulfillment of the conditions precedent.<\/p>\n<p>            The said power, however, shall be exercised if a party so<\/p>\n<p>            applies not later than when submitting his first statement<\/p>\n<p>            on the substance of the dispute.&#8221;<\/p><\/blockquote>\n<p>            Learned counsel for the petitioners has next placed<\/p>\n<p>reliance on the decision of this Court in M\/s Regent Automobiles v.<\/p>\n<p>Indian Oil Corporation Limited and others 2008 (3) RCR (Civil)<\/p>\n<p>752, wherein it was held that if there is an agreement clause in the<\/p>\n<p>agreement between the parties, then it is the mandatory duty of the<\/p>\n<p>Court to refer the dispute arising between the contracting parties to<\/p>\n<p>the Arbitrator.\n<\/p>\n<p>            Article 10.14 of the agreement reads as under:-<\/p>\n<p>            &#8220;Any and all disputes, differences and \/ or claims arising<br \/>\n<span class=\"hidden_text\"> Civil Revision No.5602 of 2008                            4<\/span><\/p>\n<p>           out of or in connection with the Agreement or its<\/p>\n<p>           performance shall settled by arbitration to be held in New<\/p>\n<p>           Delhi in accordance with the provisions of the Arbitration<\/p>\n<p>           and Conciliation Act, 1996, or any statutory amendments<\/p>\n<p>           thereof and shall be referred to the sole arbitrator as may<\/p>\n<p>           be appointed by the Lender.          The reference to the<\/p>\n<p>           arbitrator shall be within the clauses, terms and<\/p>\n<p>           conditions of this agreement.       The arbitrator shall be<\/p>\n<p>           competent to decide whether any matter of dispute or<\/p>\n<p>           difference referred to him falls within the purview of<\/p>\n<p>           arbitrator as provided for above\/ or for any matter relating<\/p>\n<p>           to arbitration under the Arbitration and Conciliation Act,<\/p>\n<p>           1996. The Award given by the arbitrator shall be final and<\/p>\n<p>           binding on all the parties concerned.&#8221;\n<\/p>\n<p>           Thus, as per the arbitration clause in the agreement any<\/p>\n<p>and all disputes, differences or claims arising out of or in connection<\/p>\n<p>with the agreement or its performance shall be settled by arbitration.<\/p>\n<p>           Hence, in view of the arbitration clause, I am of the<\/p>\n<p>considered view that it is mandatory duty of the Court to refer the<\/p>\n<p>dispute arising between the parties to the Arbitrator.<\/p>\n<p>           Learned trial Court had erred in dismissing the application<\/p>\n<p>moved by the petitioners for reference of the dispute between the<\/p>\n<p>parties to the Arbitrator. The petitioners must be relegated to the<\/p>\n<p>remedy of arbitration.\n<\/p>\n<p><span class=\"hidden_text\"> Civil Revision No.5602 of 2008                           5<\/span><\/p>\n<p>           Accordingly, this petition is allowed. The impugned order<\/p>\n<p>dated 11.9.2008 (Annexure P-5) passed by the Civil Judge, (Jr.Divn.)<\/p>\n<p>Ludhiana is set aside. Consequently, the application moved by the<\/p>\n<p>petitioners under Section 8 read with Section 5 of the Act is allowed.<\/p>\n<p>The matter shall stand refer to the Arbitrator in terms of the<\/p>\n<p>arbitration clause. Further consequential orders in the context shall<\/p>\n<p>be passed by the learned trial Court.\n<\/p>\n<\/p>\n<p>                                              (SABINA)<br \/>\n                                               JUDGE<\/p>\n<p>July 13, 2009<br \/>\nanita\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court Shriram Transport Finance &#8230; vs Jasbir Singh @ Jasveer Singh on 13 July, 2009 Civil Revision No.5602 of 2008 1 In the High Court of Punjab and Haryana at Chandigarh Civil Revision No.5602 of 2008 Date of decision: 13.7. 2009 Shriram Transport Finance Co.Ltd. and another &#8230;&#8230;petitioners Versus Jasbir Singh @ Jasveer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-217420","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shriram Transport Finance ... vs Jasbir Singh @ Jasveer Singh on 13 July, 2009 - Free Judgements of Supreme Court &amp; 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