X has entered into a Loan cum Hypothecation agreement with Y (an unregistered finance company) for purchase of a vehicle which is in the name of Z, it was agreed between X & Y, at the time of purchase that the vehicle would be transferred in the name of X within one month and Y would get it done. Y did not get the vehicle transferred in the name of X. X stopped paying the EMI's and filed a civil suit against Y. Y appeared and moved applicatin for refer the case for arbitration. The said agreement also contained an arbitration clause.
1. Whether the agreement is valid, since the Y got the agreement signed of the vehicle by X, which is not in the name of X? Whether Y being an unregistered company, enter into any such agreement of financing? Is'nt the agreement in itself is void?