{"id":34057,"date":"1997-11-20T00:00:00","date_gmt":"1997-11-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/goodwill-india-ltd-vs-s-ishpal-singh-and-others-on-20-november-1997"},"modified":"2018-06-25T06:55:40","modified_gmt":"2018-06-25T01:25:40","slug":"goodwill-india-ltd-vs-s-ishpal-singh-and-others-on-20-november-1997","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/goodwill-india-ltd-vs-s-ishpal-singh-and-others-on-20-november-1997","title":{"rendered":"Goodwill India Ltd. vs S.Ishpal Singh And Others on 20 November, 1997"},"content":{"rendered":"
Delhi High Court<\/div>\n
Goodwill India Ltd. vs S.Ishpal Singh And Others on 20 November, 1997<\/div>\n
Author: C Nayar<\/div>\n
Bench: C Nayar<\/div>\n<\/p>\n
<\/pre>\n
ORDER<\/p>\n
 C.M. Nayar, J. <\/p>\n
 I.A.No. 1535\/93   <\/p>\n
 1.     The  present application has been filed under Section 41 of the  Arbitration  Act read with Schedule II and Order 40 Rule 1 and Section 151  CPC for  appointment  of Shri Rakesh Jain, Field Inspector  of  the  petitioner company  as Receiver to take possession of the Vehicle bearing  Engine  No. 697  Turbo. 02.7.16076 Chassis No. 516.002.7.16057 and Registered  No.  HRU 591.  The  petitioner has stated in paragraph 7 of the  main  petition  the following amounts which are due from the respondents under each head:-\n<\/p>\n
  \"i)  Recovery of over due hire money                   Rs.23,200.00\nii)  Compensation charges for late payment upto\n     the date of filing of the present petition.       Rs.87,815.00\niii) Return of the vehicle in dispute in the same\n     order and condition in which it was hired out \n     (fair, wear and tear excepted) or in its \n     absence its present market value).                Rs.3,00,000.00\niv)  Recovery of double the amount of average \n     monthly hire as provided in Schedule B to the \n     aid agreement during the period the respondents\n     remains in adverse possession of the vehicle \n     from the date of expiry of the period of hire \n     instalments i.e. from 23.11.81 till the respondent \n     surrender the said vehicle as provided in the \n     Hire Purchase Agreement                           Rs.2,03,800.00\nv)   Further payment of compensation charges\n     in terms of the agreement on the amount\n     of the arrears of hire money not paid\n     after the date of filing of the present\n     proceedings till the date of payment.\" \n \n\n<\/pre>\n
 2.   The learned counsel contends that the vehicle at present is in possession of respondent No.3 and the Receiver may be permitted to repossess  the same.  Taking into consideration the facts as well as the amount  due  from the respondents, Shri Rakesh Jain, Field Inspector of the petitioner company  is hereby appointed as the Receiver to take possession of  the  vehicle and keep the same in his custody subject to further order as may be  passed by  the Arbitrator. The petitioner shall be at liberty to take  the  police assistance  in case it is deemed necessary. This application is allowed  in the above terms.\n<\/p>\n
 S.No. 335\/93 <\/p>\n
 3.   The present petition is filed under Section 20 of the Indian  Arbitration Act, 1940 for filing the Arbitration Agreement dated June 12, 1980  in Court  and  for an order for reference of the disputes  which  have  arisen between  the  parties to the named Arbitrator therein  Shri  Chander  Mohan Oberoi, Advocate, Delhi.\n<\/p>\n
 4.   The  petitioner is a company incorporated under the  Indian  Companies Act,  1913  and has its registered office at Harsha Bhavan,  E-13\/29,  Connaught Place, New Delhi-110001. It carries on the business of hire purchase of motor vehicles. It is further stated that Shri R.N.Gupta is the Managing Director  of  the  petitioner company and is duly authorized  to  sign  and verify the pleadings and to institute the suit.\n<\/p>\n
 5.   The petitioner company purchased a new chassis bearing Engine No.  697 Turbo  02.716076 Chassis No.516.002.16507 from M\/s Jaika  Automobiles  Pvt. Ltd.   vide  their  invoice  No.760\/PN  dated  12.6.1980  valued  for   Rs. 3,30,256.00  and  the payment was made by the  petitioner.  Thereafter  the petitioner entered into Hire Purchase Agreement with respondent No.1 & 2 as the  Joint hires, respondent No.3 stood as the guarantor for and on  behalf of respondents 1 and 2 vide Hire Purchase Agreement dated 12.6.1980 on  the terms and conditions mentioned therein. The said agreement was entered into for a total sum of Rs.3,74,056\/- which included chassis value Rs.3,30,256\/- hire  charges  for 17 months, Rs.38,400\/- insurance charges for  2nd  year, Rs.5400\/-  making it a total sum of Rs.3,74,056\/-. At the time of  entering into  the said Hire Purchase Agreement dated 12.6.1980 respondents 1 and  2 paid  a  sum  of  Rs.1,70,256\/- as initial payment  leaving  a  balance  of Rs.2,03,800\/- to be paid in 17 monthly hire installments w.e.f. 23.7.1980 as per  Schedule B to the said agreement, at the rate of first 10  installments of  Rs.11,700\/- each and the 11th installment being of Rs.17,100\/-  12th  to 16th installment of Rs.11,700\/- each balance one installment of  Rs.11,200\/- besides  the payment of compensation charges for late payment of  hire  installments and other incidental expenses for insurance and other expenses as per  terms and conditions of the said Hire Purchase  Agreement.  Respondent No.3 signed the said Hire Purchase Agreement as guarantor for and on behalf of  respondents  1  and 2 and his liability is co-extensive  with  that  of respondents  1 and 2. The vehicle was registered with the  Registering  Authority with the endorsement that the vehicle was held under Hire  Purchase Agreement with the petitioner company and allotted Regd. No.HRU 591.\n<\/p>\n
 6.   It is alleged that the respondents after taking away the said  vehicle under  Hire Purchase Agreement dated 12.6.1980 failed and neglected to  pay the  hire  installments  in terms  of the  said  agreement  and  a  sum  of Rs.23,200\/- is due and payable towards over due hire money and  Rs.87,815\/- towards compensation charges for late payment. The petitioner  consequently issued  various  notices to the respondents to comply with  the  terms  and conditions  of  the said Hire Purchase Agreement and to make  payments  but they failed and neglected to do so. On failure of the respondents  to  pay the  money  the petitioner asked for settlement of the disputes by  way  of arbitration  as admittedly the disputes had arisen between the parties  and are  mentioned  in paragraph 7 of the petition. The arbitration  clause  as referred to in the Agreement reads as follows:-\n<\/p>\n
 “CLAUSE VI-(a). All disputes, differences, and or claims, arising out  of the 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 Chander  Mohan  Oberoi, Advocate Delhi or in case of his death, refusal, neglect, incapability  to act as on arbitrator to the sole arbitration  of  Shri Inder  Jit Gulati Advocate, Delhi. The reference to the  Arbitrators  shall  be with the CLAUSES, TERMS AND  CONDITIONS  of  this Agreement.  The award given by the Arbitrator shall be final  and binding on all the parties concerned.\n<\/p>\n
 (b) It has been expressly explained by the owner 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 have willingly agreed to  the nomination of the said Arbitrator\/s, and they shall not raise any objection  against the appointment of any of the Arbitrator\/s  on the  ground that the Arbitrator\/s is\/are connected in any  manner with the owners.\n<\/p>\n
 (g)  Any party desirous of making a reference to the  Arbitrator, shall give fifteen days, Registered Act. 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  addresses 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.”\n<\/p>\n
 7.   Notice of the petition was issued to the respondents on 2nd  February, 1993.  Respondents 1 and 2 were duly served and respondent No.3 was  served vide publication. Despite service there were no appearance on their  behalf and they were, accordingly, directed to be proceeded against ex-parte  vide Order dated 19th May, 1997. The affidavit by way of evidence has been filed by the petitioner on July 5, 1997.\n<\/p>\n
 8.   I have heard learned counsel for the petitioner and perused the  documents on record. The petitioner has filed copy of the Incorporation Certificate  which  is filed with the main petition and is marked  as  Ex.PW.1\/1. True  copy  of the Power of Attorney issued by the Board  of  Directors  in favor of Shri R.N.Gupta, Managing Director of the petitioner company which is  filed  with  the main petition is marked as Ex.PW.1\/2. A  copy  of  the Invoice No.760\/PN dated 12.6.1980 is marked as Ex.PW.1\/3. The original Hire Purchase  Agreement  entered  into between the parties  is  Ex.PW.1\/4.  The statement  of account is marked as Ex.PW.1\/5 and copy of the  letter  dated 28.6.1988  is filed as Ex.PW.1\/6. The petitioner has placed on record  various notices and reminders which are collectively marked as Ex.PW.1\/7.\n<\/p>\n
 9.   In view of the above facts and there being no contest by the  respondents  the  averments  made in the petition are deemed to  be  correct.  The petition  is, accordingly, allowed and the disputes which have  arisen  between  the  parties as referred in paragraph 7 of the petition  are  hereby referred  to the arbitration of Shri Chander Mohan Oberoi, 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
Delhi High Court Goodwill India Ltd. vs S.Ishpal Singh And Others on 20 November, 1997 Author: C Nayar Bench: C Nayar ORDER C.M. Nayar, J. I.A.No. 1535\/93 1. The present application has been filed under Section 41 of the Arbitration Act read with Schedule II and Order 40 Rule 1 and Section 151 CPC for […]<\/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":[14,8],"tags":[],"class_list":["post-34057","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"\nGoodwill India Ltd. vs S.Ishpal Singh And Others on 20 November, 1997 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/goodwill-india-ltd-vs-s-ishpal-singh-and-others-on-20-november-1997\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Goodwill India Ltd. vs S.Ishpal Singh And Others on 20 November, 1997 - 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