JAGDISH CHANDER Vs. RAMESH CHANDER

JUDGEMENT

(1.) This appeal by special leave is against the order dated 10.7.2001 passed by the Designate of Chief Justice of the High Court of Delhi, allowing Arbitration Application No.284 of 1997 filed under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 (the Act for short).

(2.) The appellant and first respondent entered into a Partnership as per deed dated 9.1.1964 to carry on the business under the name and style of Empire Art Industries. Clause 16 of the said Deed relates to settlement of disputes. The said clause is extracted below:

(3.) The first respondent filed the application for appointment of an Arbitrator to decide the disputes in regard to dissolution of the said partnership firm and for rendition of accounts. In the said application, the first Respondent arrayed the appellant herein as the first respondent. Respondents 2 to 6 herein were also impleaded as respondents alleging that the two partners entered into an arrangement/agreement with Respondents 2 to 6 in the year 1974 under which Respondents 2 to 6 were to supervise the business of the firm and pay to each of the two partners, a fixed sum, which was increased periodically. According to first Respondent, the arrangement worked satisfactorily for several years, but for some years, the entire amount was being received by the appellant and he was not paying the first Respondents half share. The appellant resisted the petition, inter alia, on the ground that the partnership had come to an end in the year 1979 and the accounts were all settled. He also contended that the partnership deed did not contain any agreement to refer disputes to arbitration. It was specifically contended that Clause 16 of the Deed of Partnership was not an arbitration agreement.