SUPER DIAMOND TOOLS Vs. K. MOHAN RAO

JUDGEMENT

(1.) The present appeal questions an order of the Madras High Court which upset the findings of a learned single judge of that Court. The single judge had rejected the respondent's petition under Sec. 34 of the Arbitration and Conciliation Act, 1996; the Division Bench set aside the single judge's order and appointed a fresh arbitrator.

(2.) The award in this case was made, pursuant to a reference by the Madras High Court on 28/8/1997. The dispute between the parties was in respect of partnership accounts. The surviving partner of the appellant alleged that the first respondent was guilty of falsification of accounts and that he had siphoned off huge sums of money. The parties had initiated a dialogue with the idea of settling the dispute amicably. However, there was no resolution. As a result, the respondent approached the High Court under Sec. 11 of the Act which culminated in the reference.

(3.) The arbitral tribunal comprising of a sole arbitrator examined the pleadings and evidence and concluded that the first respondent was guilty as alleged. The appellant, interestingly, did not prefer a claim, and instead made a counter claim in the course of the arbitration proceedings, initiated at the behest of the first respondent. The arbitral tribunal, on the basis of its findings held that a total sum of Rs.76,34,423.86 had to be duly accounted after deducting the first respondent's share. The amount was Rs.53,87,664.40.