RAJ PAL MANCHANDA Vs. KAMAL KISHORE MANCHANDA

JUDGEMENT

(1.) This petition has been preferred under Section 11 of the Arbitration and Conciliation Act, 1996 (the Act) to seek the appointment of an arbitrator. The parties, admittedly, entered into a partnership deed dated 01.02.2008. The said partnership was, however, unregistered. This partnership deed contains the following arbitration clause:

(2.) The petitioner, who is one of the partners and the father of respondent No. 1 and also related to the other respondents, submits that the partnership firm has been working under the name and style of M/s The Punjab Steel Works., which is engaged in the business of manufacturing, forging and sale of iron and steel goods. The share of the various partners in the profits and losses of the firm have been clearly set out in the partnership deed. It is stated that the accounts of the partnership firm were being maintained with Bank of India, but in the year 2006 one more account with ICICI Bank, Rajouri Garden, New Delhi, was opened in the name of the firm. The petitioner states that earlier he was primarily looking after the day-to-day affairs of the firm, but with age catching up, he could not undertake the day-to-day decision making for running of the business of the firm, and the responsibility of running the firm was shouldered by his son Kamal Kishore Manchanda, i.e. respondent No. 1. Presently, it is the respondent No. 1, who is looking after the business of the firm.

(3.) The grievance of the petitioner is that respondent No. 1 is mismanaging the affairs of the firm. He has opened another bank account with the name of the firm. Incomes of the firm are being diverted to the said account opened by, and being operated by respondent No. 1 alone. Due to the alleged aforesaid conduct of respondent No. 1, disputes have arisen between the parties. In this background, the petitioner seeks appointment of an arbitrator as, it is contended, despite the notice dated 28.07.2009 invoking the arbitration agreement, the parties have not been able to agree on any person to act as an arbitrator.