SUHAN SUNDER Vs. BABY RAGHAVA

JUDGEMENT

(1.) The petitioners have 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 to resolve the dispute between the parties in terms of Clause-17 of the Partnership Deed dated 26.02.2015 entered into between the parties.

(2.) It is the case of the petitioners that the petitioners and the respondent formed a partnership firm by name "Vijayalakshmi Jelly Crusher" in terms of the partnership deed dated 26.02.2015 and the same came to be registered under the provisions of Registration Act and, Certificate of Registration of Firm also came to be issued on 05.03.2015 in terms of the conditions of the partnership firm. Both the petitioners have 50% share and the respondent holds 50% of the share in the assets and liability and profit and loss of the business of the firm. The partnership firm came to be established with an object of manufacture of Granite Boulders, Jelly, Concrete Hollow Blocks and other allied products. The office of the firm is situated at property bearing Sy.No.239/P1, Vittala Mudnuru Village, Bantwala Taluk. The partnership is entered into at Will. The partners invested huge money and thereafter the Firm started to carry on the business smoothly. When the returns started to come, the respondent started to show hostile attitude towards the petitioners. The respondent has excavated the granite blocks and manufacture jelly by crushing without giving proper account for the income derived from the sale of jelly manufactured after deducting the expenses.

(3.) It is further case of the petitioners that inspite of investing huge amount in order to defeat the rights of petitioners, the respondent issued a legal notice dated 16.03.2018 and the said legal notice was properly replied on 28.05.2018. In spite of submitting reply, the respondent excavated the granite blocks and manufactured jelly and carried out business without providing proper accounts. In the reply, petitioners have specifically contended to solve the dispute and also to give the proper accounts. It is further stated that the partners entered into a consent deed dated 26.02.2015, the firm started investing funds in the jelly crushing business. The petitioners have invested about Rs.1,25,00,000/- for the purpose of making the said property in Sy.No. 239/P8 measuring 3.50 and Sy.No.239/P1 measuring one acre suitable for excavation of granite blocks and for crushing and manufacturing granite jelly. On account of continuous default committed by respondent, the petitioners issued a legal notice dated 07.07.2018 calling upon the respondent to settle the dispute or to refer the matter for Arbitrator by name Sri. Poornesh, Advocate. It is further contended that as per Clause-17 of the Partnership Deed, there is any dispute between the parties, the same shall be referred to Arbitrator invoking the said Arbitration Clause. Therefore, the petitioners are before this Court for the relief sought for.