ARUN KAPUR Vs. VIKRAM KAPUR

JUDGEMENT

(1.) This order shall dispose of the main petition as well as the application under order 39 Rule 4 Civil Procedure Code. In this petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Act') an ex parte order was passed on 5/4/2001 whereby status quo was to be maintained with regard to the functioning and management of the Atlas Cycle's Malanpur Unit in view of the following:-

(2.) Through application filed under Order 39 Rule 4 Civil Procedure Code the respondents have sought setting aside the stay order firstly because it was obtained by making a false and misleading statement in relation to the material particulars by not disclosing the proceedings before the Hon'ble Arbitrator wherein identical prayer was made before the Hon'ble Arbitrator which was declined and second attempt was also made by the petitioner in obtaining the injunction from the Hon'ble Arbitrator and secondly the observations of the Auditors as well as the Hon'ble Arbitrator as to the conduct of the petitioner in siphoning off the funds of the company in clandestine manner from Maianpur Unit to Limrose and further transferring it into the accounts of 10 other shell companies owned by him, his wife and children.

(3.) The relevant extracts of the order of the Hon'ble Arbitrator with regard to the application moved by the petitioner on 31/3/2001 seeking identical relief are as under:-