Madan Lal Shroff vs Surya Prakash Shroff

Prakash Shrivastava, CJ

This application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by the applicant for appointment of arbitrator to resolve dispute between the parties.

The case of the applicant is that the partnership deed dated 29th of February, 2000 was executed by the parties to carry out the business of petrol pump and other businesses which contained the arbitration clause. In terms of the said agreement, applicant is entitled to his share of revenue of partnership firm but the same was denied, therefore, applicant had given the notice dated 22nd of March, 2021  invoking  the  arbitration  clause  and  making  the  prayer  to  the respondent to appoint the proposed person as the sole arbitrator to decide the dispute. In the applicant the stand of the applicant is that the partnership deed has not been dissolved and no fresh subsequent partnership deed has been executed.

The respondent has filed the reply admitting the execution of the partnership deed dated 29th of February, 2000 but taking the stand that the said partnership was subsequently dissolved and by dint of family settlement, the business of the family was mutually separated.

The applicant by filing the affidavit in reply has denied the dissolution of the partnership firm and execution of any fresh partnership. By way of subsequent affidavit additional document has been filed by the respondent.

Having heard the learned Counsel for the parties and on perusal of the record, it is noticed that the partnership deed dated 29th of February, 2000 is not in dispute which contains the following arbitration clause:

“14. That all disputes and differences whatsoever which shall either during the Partnership or afterwards arise between the partners or other representative, legal representatives, touching these present shall be referred to arbitration which shall be governed by the Indian Arbitration Act or statutory modification thereof for the time being in force.”

The applicant had given due notice invoking arbitration clause in view of the dispute as alleged in respect of sharing of revenue of the partnership firm. The dissolution of the partnership form dated 29th of February, 2000 and creation of subsequent new form is in dispute and such a dispute can be decided by the arbitrator. Hence, at this stage a case of appointment of arbitrator in terms of the arbitration clause is made out. Accordingly, the name of Shri Soumya Dasgupta, Advocate, resident of 114H/4 Ananda Palit Road, Kolkata – 700014 (Mobile No. 9830576448) is proposed for appointment as arbitrator.

The Registrar, Original Side is directed to obtain the declaration from the proposed arbitrator in terms of Section 12(1) in the form prescribed in the Sixth Schedule of the Act.

Since the affidavit in opposition and affidavit in reply are already taken on record, therefore, G.A. No. 1 of 2021 is disposed of accordingly.

List on 04th of April, 2022.