AI Structured Summary
Not yet generated for this judgment
Judgment
Sudhanshu Dhulia, J
This appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 against an order dated 31.05.2019 passed by the learned District Judge, Almora on an application moved under Section 9 of the Arbitration and Conciliation Act, 1996 by one of the partners. The operative portion of the order of the court below reads as follows:-
"(i) The respondent nos. 1, 2 & 3, as agreed during arguments, shall appoint/give the name of Arbitrator to the petitioner within ten days from the date of passing of this order;
(ii) As agreed by the parties, the Arbitral Tribunal shall decide the grievances of parties according to law arising out of the execution of two partnership deeds dated 7.11.2013 relating to the firm, Barman Medical Store and dated 16.11.2013 relating to the firm, M/s Hotel Shikhar; and
(iii) All the partners are also directed to abide by the terms and conditions of the partnership deeds dated 7.11.2013 and 16.11.2013 relating to bank operations and extensions of lease deed in favour of the tenants in M/s Hotel Shikhar till the termination of arbitral proceedings."
All the partners are closely related to each other, and are members of one family. There is a firm in which all the members are partners, which runs a hotel called "M/s Hotel Shikhar" in Almora, regarding which the dispute has arisen and hence the matter went under Section 9 of the Arbitration and Conciliation Act before the learned District Judge.
Learned counsel for the appellant says that in the order of the learned District Judge, Almora dated 31.05.2019 as far as condition nos. (i) and (ii) are concerned, he has no grievance but as per condition no. (iii) the terms of partnership deeds dated 07.11.2013 and 16.11.2013 is to continue till the termination of the arbitral proceedings. This order, it is submitted, may even prohibit or restrain the learned Arbitrator to pass any interim order under Section 17 of the Act, where the statute itself provides an Arbitrator to pass an interim order under Section 17 of the Act. This contention is very fairly admitted by the learned counsel for respondent nos. 1, 2 & 3, Mr. Dharmendra Barthwal as well.
In view thereof, with the consent of both the parties, the matter stands disposed of with slight modification in the order dated 31.05.2019. The third condition shall stand modified to the extent that all the parties shall abide with the terms and conditions of the partnership deeds dated 07.11.2013 and 16.11.2013 regarding the bank operations and extension of lease deed in favour of the tenants in M/s Hotel Shikhar only till the Arbitrator is duly appointed and becomes functional and thereafter the parties to the dispute would be at liberty to move an application for any interim order before the Arbitration Tribunal, which shall be considered in accordance with law.