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2018 Supreme(Kar) 671

IN THE HIGH COURT OF KARNATAKA AT KALABURAGI BENCH
B. VEERAPPA, J.
Sriram Transport Finance Company Ltd., - Petitioner
Versus
M. Ghouse S/o Shaik Maheboob - Respondents
CRP.NO.200017 of 2016
Decided On : 11-04-2018

Advocates Appeared:
For the Petitioners:Sri A.M. Nagaral, Advocate.
For the Respondents:Sri Sachin M.Mahajan., Advocate.

Headnote:ARBITRATION AND CONCILIATION ACT, 1996 [C.A. No. 26/1996] - Section 8 - CODE OF CIVIL PROCEDURE, 1908 [C.A. No. 5/1908] - Section 189 - Reference to arbitration - Rejection of application - Plaintiff filed suit for mandatory injunction - Defendant on basis of hypothecation agreement between him and plaintiff filed application under Section 8 to refer matter for arbitration - Plaintiff not challenging arbitration clause in agreement - Rejection of application solely on ground of non-mentioning name of arbitrator, held, improper.

ORDER :

1. This Civil Revision Petition is filed against the order dated: 23-11-2015 on I.A.No.II made in O.S.No.462/2013 rejecting the application filed by the defendant under section 8 of the arbitration and conciliation Act, 1996 read with section 189 of Code of Civil Procedure.

2. The present respondent who is the plaintiff in O.S. NO.462/2013 filed the suit for mandatory injunction directing the defendant to restore, handover deliver and put in possession of the plaintiff’s seized and detained lorry Ashok Leyland bearing Reg. No.KA-14-6436 under H.P.A finance by the defendant and shall not cause any sort of interference into the peaceful carrying on the transportation business by the plaintiff with said lorry in future and further direct the defendant to pay and indemnify damages for the illegal seizer and detention of the plaintiff’s lorry into their custody.

3. The plaintiff has contended that, he is permanent resident of Raichur and he is lorry driver holding valid heavy license from the RTO, the plaintiff is professing transportation business through means of lorry. The plaintiff was interested in purchasing the lorry and therefore purchased the lorry bearing Reg. No.KA-14-6439 from one Mehaboob Khan S/o Nawab Khan resident of Manvi by availing finance from defendant. The defendant has transferred the finance of Mehaboob Khan to the plaintiff and by virtue of the defendant finance hire purchase agreement with defendant Sriram Transport Finance Company was availed by the plaintiff on the lorry amounting to Rs.1,50,000/- dated: 04-01-2010.

4. It was further contended that, the lorry bearing Reg. NO.KA-14-6436 purchased by the plaintiff under hypothecation by the defendant for an amount of Rs.1,50,000/-. The H.P.A finance under Loan Account No.RCHU20011290020 commenced with effect from 04-01-2010 and from the date of availing the finance and delivery of the vehicle from the previous owner the plaintiff lawfully and legally carrying on and conducting the transportation lorry business in Raichur city. The lorry purchased under the finance Ashok Leyland of 11989 mode is old lorry chassis No.AIEN230873 Engine No.AIENI07703 Diesel fuel engine lorry. It was further contended that, the plaintiff has paid regular installments on the H.P.A loan of the lorry to the defendant at the rate of Rs.6,250/- regularly upto 15-07-2013 which is acknowledged by the defendant finance under valid receipt which are produced before the kind perusal of the Hon’ble Court under list of documents and there is no default in the payment of the installments by the plaintiff to defendant in respect of the loan finance availed on the lorry. It is the bound and duty of the defendant that in case of any default is occurred, the defendant shall issue default notice mandatory and final show cause notice for attachment or seizer of the lorry as per the H.P.A without due process of law and rules and regulations of H.P.A. The defendant cannot either stop running the lorry nor has right to seize and detain the lorry owned by the plaintiff under finance. It was further contended that, the defendant lorry finance office is situated on station road Raichur at a distance of half kilometer from the house location of the plaintiff. The defendant is a rich and influential person having men and machinery to do any act on the contrary the plaintiff is alone and helpless because of the loan of the lorry.

5. It was further contended that, after closure of transportation business park the vehicle lorry bearing Reg. NO.KA-14-6436 near and beneath the water tank location at Lal Pahdi Raichur. The defendant on 19-07-2013 stealthily and consolingly without any intimation and without the knowledge of the plaintiff, without due process of law, without issue of any notice, show cause notice by taking law into their hands and by unlawful assembly along with their staff and gunda people during the night when the lorry was parked during the night hours the defendant gang people finance ha

















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