C S RAVISHANKAR Vs. C K RAVISHANKAR

JUDGEMENT

(1.) The facts briefly stated are as follows:

(2.) The respondents had reluctantly called for a meeting on 7-7-2009 and 22-8-2009. But the petitioners were never allowed to verify the records and were only given vague replies to their queries. On the other hand it is alleged that the petitioners were compelled to sign certain blank papers. It is also alleged that the respondents threatened the petitioners that the first petitioner would be framed in a false case, if they did not co-operate. The first petitioner is said to have issued a legal notice to the respondents calling upon them to furnish accounts of the firm as per notice dated 16-7-2009. The petitioner is said to have received a reply informing him that he has been expelled from the firm, as on 21-10-2009. The second petitioner is also said to have issued a similar notice dated 23-02-2010, and on receiving a reply, had invoked the arbitration clause under the partnership deed naming an arbitrator. The respondents have not consented to the same. The first petitioner also has invoked the arbitration clause and had named an arbitrator. The respondents have not agreed on the named arbitrator but have suggested an alternative arbitrator. It is in this background that the present petition is filed seeking the appointment of an arbitrator.

(3.) The respondents have entered appearance and have filed statement of objections to contend that the petitioners have been relieved from the affairs of the firm during the year 2009. And that during their tenure as partners of the firm they had been privy to all the affairs and therefore there is no live dispute. The wild allegations of fraud and mismanagement would require detailed and elaborate evidence which can only be resolved by recourse to a formal suit and therefore it is contended that the petition be dismissed and that the petitioners be relegated to a civil court. Reliance is placed on the following decisions of the apex court in this regard.