T. SANJEEV KUMAR Vs. M. SREENIVASULU REDDY

JUDGEMENT

(1.) The petitioner has filed the present Civil Miscellaneous Petition under the provisions of Section 11(5) of the Arbitration and Conciliation Act , 1996 for appointment of sole arbitrator in terms of clause 16 of the Partnership Deed dated 10.11.2005 entered into between the parties.

(2.) It is the case of the petitioner that on 10.11.2005, the petitioner and the respondents have entered into the registered Partnership Deed, to carry on the business of civil constructions, interior decoration and other related services under the name and style of 'Parisaraa Developers'. On 24.03.2008, the petitioner and respondents have entered into second project under the terms of Partnership in the name of 'Vishwa Prakruthi Green Woods'. The petitioner and respondent Nos.2 to 5 have executed registered GPA in favour of the respondent No.1 to do all the acts and deeds in respect of schedule property. On the very same day, the land owners of properties have executed registered joint development agreement to M/s. Parisaraa Developers and agreed to transfer 59% share in the name of Parisaraa Developers Firm. After development, 24 Flats were allotted to the share of Parisaraa Developer's Firm and 16 Flats were allotted to the owner's share. That being the position, on 16.05.2018, at the time of meeting, the petitioner demanded the respondent No.1 to produce accounts position of Company up to March, 2018 in so far as First and Second Projects made under Parisaraa Developers is concerned. On that day, the respondent No.1 totally neglected and refused to produce any account details and information to the petitioner and informed that the petitioner should not interfere with the business of Partnership. After the said incident, on 25.05.2018, the petitioner issued notice for termination of GPA dated 24.03.2008, executed in favour of the respondent No.1 and on 26.05.2018, the same was published in the daily newspaper.

(3.) Inspite of the same, the respondent No.1 without knowledge of the petitioner, without having lawful attorney, illegally executed registered Sale Deed in favour of himself in respect of 2 BHK Flat. On 12.06.2018, again the respondent No.1 has executed registered Sale Deed in favour of the respondent No.4 without having lawful attorney. But inspite of sending letters, the respondents have not responded and also not attended the meeting. In the meantime, the petitioner sought account details from the Firm Auditor. Then only the petitioner realized that there is misappropriation of funds and wrongful entries made in the accounts of Parisaraa Developers Firm in so far as both the projects and also the petitioner pointed out that, in the balance sheet which is certified by the Firm Auditor mentioned in the petitioner's capital account as a cash withdrawal of Rs.25,00,000/- (Rupees Twenty Five lakhs only), but in fact, to the best of the petitioner's knowledge and belief the petitioner has not received any cash payment during the financial year ending 31.03.2013 under consideration.