CRP (NPD) No. 1278 of 2013 and M.P. No. 1 of 2013. Case: S. Sakthivel Vs The Manager, M/s. Vijay Hemant Finances Estate Ltd.. High Court of Madras (India)
| Case Number | CRP (NPD) No. 1278 of 2013 and M.P. No. 1 of 2013 |
| Counsel | For Appellant: Mr. C. Venkatesan, Adv. |
| Judges | S. Manikumar, J. |
| Issue | Arbitration and Conciliation Act, 1996 - Section 8 |
| Judgement Date | April 03, 2013 |
| Court | High Court of Madras (India) |
Order:
S. Manikumar, J.
1. Material on record discloses that for the purchase of a car, the revision petitioner has availed loan from Vijay Hemant Finance and Estate Limited. A sum of Rs. 10,00,000/-, has been borrowed, agreeing to pay in 36 equal monthly instalments of Rs. 34,222/- The car has also been hypothecated to the Finance Company. According to the revision petitioner though, he was regularly paying the monthly instalments, with the help of rowdy elements, the Finance Company has attempted to seize the car. It is also the contention of the revision petitioner that the car, was in a mechanic shop. On the above pleadings, the revision petitioner has filed a suit in O.S. No. 2403 of 2012, for a permanent injunction restraining the defendants, their men, agents, servants or any one on their behalf or under them from seizing the car bearing Registration No. TN 01 AV 1111. In the suit, the borrower/revision petitioner has also filed I.A. No. 6353 of 2012, for an interim injunction. Upon considering the pleadings and documents, the Court below, by order dated 26.04.2012, has granted interim injunction, pending disposal of the suit.
2. Referring to clause 22 of the Loan Agreement which contains an Arbitration clause, wherein it is specifically mentioned that "all disputes, differences and or claims arising out of this agreement whether during its subsistence or thereafter, shall be settled by arbitration, in accordance with Provisions of the Arbitration and Conciliation Act 1996 or any statutory amendments thereof and shall be refer to the sole arbitration of an Arbitrator nominated by the lender and that the Award given by such an Arbitrator shall be final and binding on the borrower to the agreement", the Finance Company has filed an application in I.A. No. 12257 of 2012, to dismiss the suit by directing the revision petitioner/plaintiff to refer the subject matter of the suit to arbitration.
3. On the merits of the case, the Finance Company has also submitted that from the 4th instalment onwards, the plaintiff/revision petitioner had committed default in payment of monthly instalments and neglected to pay, inspite of several reminders. The Finance Company has also submitted that the revision petitioner/plaintiff had shifted his residence without any intimation to them and that the whereabouts of the vehicle is not known. According to the Company, the revision petitioner/plaintiff has to pay 20 installments of Rs. 8,05,560/- as arrears and also interest of Rs. 1,61,480/-.
4. The Finance Company, has also submitted that from the date of first instalment i.e., 25.01.2010 till July 2012, the revision petitioner/plaintiff has paid only 9 full instalments and some portion in the 10th instalment. According to them, the revision petitioner/plaintiff is liable to pay 21 equal instalments as arrears, as on 31.07.2012, totalling a sum of Rs. 8,45,838/-. It is also their submission that the notice sent by them on 04.04.2011 has been returned with the...
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