9911796707
TMI Blog2003 (12) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicant that under Hire Purchase Agreement, the applicant has let on hire various machineries more fully described in the schedule to the said application and as per the terms and conditions entered into on 14-1-1999, the respondent has to pay the hire charges for a period of 36 months. However, the respondent had failed to pay the hire charges and additional finance charges for belated payments and as on 15-11-2002, a sum of Rs. 63,79,462.14 has become due and payable by the respondent to the applicant. It is the further case of the applicant that in the Hire Purchase Agreement, necessary arbitration clause is incorporated and as such, it is entitled to invoke the said clause and approached the learned single Judge with two appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. It is also held that the machineries, which are only accessories to the main frame cannot be allowed to be removed and the applicant has to await the final award to be passed by the Arbitrator. 5. We have heard the rival contentions of both the parties. It is seen from the records that the respondent availed hire purchase finance from Harita Finance Limited under 13 agreements during August 1993 to February 1995 and later on Harita Finance Limited assigned the rights to the appellant company and consequent to the negotiation between the appellant company as well as the respondent company, the amount due was arrived at as per the sanction letter dated 14-1-1999 and the hire purchase agreement was again executed on the same d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ights of the hirer under this agreement shall forthwith stand determined ipso facto without any notice to the Hirer and all the instalments previously paid by the Hirer shall be absolutely forfeited to the owner who shall thereupon be entitled to enter any house or place where the said Machinery may then be, remove and retake possession of the same and to sue for all the instalments due and for damage for breach of the Agreement and for all the costs of retaking possession of the said machinery and all costs occasioned by the hirer s default". The above clause also suggest that the ownership is not transferred to the hirer until the entire payment is made. Hence, even though a draft rehabilitation scheme has been framed originally, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Co. Ltd. [1995] (1) CTC 206. 6. Per contra, the counsel for the respondent drawn our attention to the observation contained in para 12 of the Judgment rendered in Shree Chamundi Mopeds Ltd. v. Church of South India Trust Association AIR 1992 SC 1439 and tries to impress upon us that section 22(1) of the Act proceeds to the effect that no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company etc., shall lie except with the consent of the Board (BIFR) and contended that the term or the like have to be construed that the proceedings of the subject matter of the application herein falls within the scope of the above proposition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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