Hypothecation of goods obligation of
G.Nagarajeshwar Rao
(Querist) 12 March 2011
This query is : Resolved
Loan granted on Hypothecation of certain goods by finance company. The receipts not bear the signature of the borrower. The receipts contained the signature of the shop owner who alleged to have supplied by the shop. The receipt / bill is in the name of the borrower. The finance company filed suit for recovery of money. The plaintiff has examined only one witness i.e. the alleged authorized person of the finance company. The shop owner did not examine. The loan agreement is having arbitration clause. The finance company is not preferred the matter to any arbitrator, neither they inspected whether the goods handed over to the borrower. The finance company is running in the chit fund company's commercial premises. The defendant was a subscriber of one of the chit group of the said chit fund company. The defense of the defendant is he gave post dated blank cheques to pay the subscription of the said chit. The plaintiff did not prove that the goods were delivered to the defendant. In these circumstances what are the chances of the defendant to win over his case? please suggest me and give proper authorities. With regards gnrsharma @ gmail.com
adv. rajeev ( rajoo )
(Expert) 12 March 2011
when there is a arbitration clause then civil court has no jurisdiction to try the suit. File an application suit will be definately dismissed.
Advocate Bhartesh goyal
(Expert) 12 March 2011
Yes,If there exists arbitration clause in agreement,civil court has no jurisdiction to try the case.Move an application U/Order 7 Rule 11 of C.P.C read with sec 8 of Arbitration and Conciliation Act.Suit will be dismissed.
Kirti Kar Tripathi
(Expert) 12 March 2011
In case, agreement contains such arbitration clause, the jurisdiction of Civil Court is ousted. You raised objection by making application under Order VII rule -11 as Mr. Goyal suggested.
M V Gupta
(Expert) 13 March 2011
It is strange as to why preliminary objection was not raised in the written statement filed by you regarding the jurisdiction of the Court in view of the arbitration clause. Discuss with ur advocate and take steps even now to raise the objection by filing a suitable application to amnend the WS.
