ALAN MERVYN ARTHUR STEPHENSON Vs. J. XAVIER JAYARAJAN

JUDGEMENT

(1.) The petitioner who is residing in United Kingdom, having entered into a partnership, the deed of which contained an arbitration clause, seeks for the appointment of an arbitrator under Sec. 11(5) of the Arbitration and Conciliation Act, 1996. The respondent contends that the claim is hopelessly barred by limitation.

(2.) The brief fact to be noticed is that the partnership was entered into by the petitioner's sister and the respondent on 10.04.2008 with the objective of engaging in a real estate business; inter alia of construction of service apartments. The business was carried on, according to the respondent, with the active involvement of the petitioner, the brother of one of the partners. Later, the said partnership was dissolved on 22.12.2008. Both parties admit that a new partnership was entered into between the petitioner and the respondent on 20.09.2014. The petitioner alleges that substantial amounts were paid by him amounting to Rs.2,31,85,600/-, on the strength of Clause 6 of the Partnership Agreement which obligated 75% of the profits to be transferred to the petitioner, nothing was done in the property purchased on 04.05.2016. It is hence the prayer for appointment of an arbitrator.

(3.) Admittedly, the purchase of the land alleged, was on 04.05.2016 and as per the notice dtd. 09.12.2020 produced as per the Annexure P-1, the amounts were paid before the said date. As on the date of notice, hence the claim for recovery of amounts was barred by limitation.