Delhi District Court
Tata Motors Finance Ltd vs Mrs. Bimla Rishi C/O Sewa Ram Bakshi on 4 August, 2010
IN THE COURT OF SHRI P.S. TEJI : DISTRICT JUDGE
(EAST) cum ADDL.SESSIONS JUDGE, KARKARDOOMA
COURTS, DELHI.
Suit No.4/2010
Unique Case ID No.02402C0376472009
Tata Motors Finance Ltd.
Office At: No.1, Gazipur,
Patparganj, New Delhi110091. ..... Petitioner
Versus
Mrs. Bimla Rishi C/o Sewa Ram Bakshi
H.No.592, Jawahar Colony,
NIT Faridabad121001. .... Respondent
Date of institution : 02.01.2010
Date of order reserved : 22.07.2010
Date of order : 04.08.2010
O R D E R
The petitioner has filed the present petition under Section 9 of the Arbitration and Conciliation Act, 1996 with prayer to appoint Shri Brajesh Mishra, Representative of the petitioner company, as receiver to take possession of the hypothecated vehicle, make Scorpio Turbo 2, bearing engine No.24K48798, chasis No.MA1TA2BDC22K94118 and registration No.HR 51L 0206. S.No.4/2010 Tata Motors Vs. Bimla Rishi Page 1 of 5 2 It is mentioned in the petition that the petitioner is a body, incorporated under the provisions of Companies Act, 1956, having its registered office at Nanavati Mahalya, 3rd Floor, 18, Homi Modi Street, Mumbai400 001. Shri Brajesh Mishra, Authorized Representative of the company, is well conversant with the facts of the case and has been authorized by the petitioner company to sign, institute, verify and to pursue the proceedings of the petition. 3 The respondent applied for a loan for purchasing the vehicle with the petitioner company. The petitioner acceding to the request of the respondent, granted a loan in the sum of Rs.2,66,000/ (Rupees two lacs and sixty six thousand only) to the respondent vide contract No.5000221142, for the purchase of vehicle, make Scorpio Turbo 2, bearing engine No.24K48798, chasis No.MA1TA2BDC22K94118 and registration No.HR 51L 0206. The loan amount was to be repaid by the respondent to the petitioner company in 35 monthly installments of Rs.10,158/ (Rupees ten thousand one hundred and fifty eight only). After availing the facility of loan and enjoying the possession of the vehicle, the respondent failed to repay the loan as well as interest thereupon. As such, the loan facility was terminated by the petitioner vide legal notice dated S.No.4/2010 Tata Motors Vs. Bimla Rishi Page 2 of 5 13.8.2009. The respondent is liable to pay a sum of Rs.2,68,411/ (Rupees two lacs sixty eight thousand four hundred and eleven only) to the petitioner company as on the date of filing of the petition. The loan agreement contained arbitration clause which the petitioner intended to invoke. The petitioner had the apprehension that the respondent may dispose of the vehicle and if the respondent is succeeded in disposing of the vehicle, the petitioner shall suffer irreparable loss and injury.
4 Vide exparte order dated 2.1.2010, Shri Brajesh Mishra was appointed as receiver to take possession of the hypothecated vehicle, i.e., Scorpio Turbo 2, bearing engine No.24K48798, chasis No.MA1TA2BDC22K94118 and registration No.HR 51L 0206. 5 The respondent was duly served with the notice of the petition sent to her for her appearance in the court on 14.7.2010. The notice sent to the respondent received back with the report of refusal. Since, none appeared for the respondent in the court despite service of notice, therefore, the respondent was proceeded exparte. The ex parte arguments of the learned counsel for the petitioner were heard on 22.7.2010.
6 The perusal of the record shows that the agreement S.No.4/2010 Tata Motors Vs. Bimla Rishi Page 3 of 5 entered into between the petitioner and the respondents bears the arbitration clause. Clause 23 of the agreement reads as under: "All disputes, differences and/or claims arising out of this Loan Agreement or as to the construction, meaning or effect hereof or as to the rights and liabilities of the parties hereunder shall be settled by arbitration to be held in Mumbai in accordance with the Arbitration and Conciliation Act 1996, or any statutory amendments thereof and shall be referred to a person to be appointed by the Lender. In the event of death, refusal, neglect, inability, or incapability of the person so appointed to act as an Arbitrator, the Lender may appoint a new arbitrator. The award of the arbitrator shall be final and binding on all parties concerned." 7 As per clause 23 of the agreement, it is clear that this Court is not having jurisdiction to try and entertain the present petition. It is clearly mentioned in the agreement that any petition under the Arbitration and Conciliation Act can be filed before the competent Court at Mumbai alone. The petitioner company itself has incorporated the clause 23 in the agreement vide which the arbitration can be invoked only in the competent court at Mumbai, therefore, the petitioner cannot be permitted to back out from its own clause in agreement. Consequently, it is held that this Court is not having any jurisdiction to try the present petition.
S.No.4/2010 Tata Motors Vs. Bimla Rishi Page 4 of 5 8 Thus, the present petition filed by the petitioner company under Section 9 of Arbitration Act, is hereby dismissed, being not maintainable.
File be consigned to record room.
Announced in the open Court ( P.S. TEJI )
Dated: 4.8.2010 District Judge (East)
cum Addl. Sessions Judge
Karkardooma Courts : Delhi
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