RAJINDER SINGH Vs. KARTAR SINGH

JUDGEMENT

(1.) The petitioners have moved two applications for interim relief. IA.No. 11741/99 is in application under Section 9 of the arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) read with Order 40 Rule 1 Civil Procedure Code for appointment of a court receiver to take possession of the entire assets of the partnership M/s Kalyan Cinema and IA.No.11736/99 is under Section 9 of the Act read with Order 39 Rules 1 and 2 Civil Procedure Code for grant of interim injunction restraining the respondents from running the business of Kalyan Cinema or any other similar business by using the name or property of the dissolved partnership firm.

(2.) A short background of the facts is necessary. The applicants are the legal heirs of Sh.Kanhai Ram, who Mas a partner alongwith the respondents having 31.66% share in partnership firm, M/s Kalyan Cinema, As he Mas not satisfied with the running of the business of the firm, he filed a petition under Section 20 of the Indian Arbitration Act, 1940 which was registered as Suit No.1918A/95 for appointment of an arbitrator in terms of the arbitration clause contained in the partnership deed alleging that disputes had arisen with regard to the business of the cinema and its canteen and cycle stand. He had claimed rendition of accounts of the business w.e.f. 1986 and claimed his share.

(3.) Along with the main petition Kanhai Ram had also moved an application for appointing him a receiver (IA.8369/95 in S.No.1918/95), which was allowed vide orders dated 4/1/1996 and Kanhai Ram was appointed a receiver of the canteen and the cycle stand. Later on, Kanhai Ram had also moved an application for amendment (IA.1114/97) of the main petition, alleging that additional disputes had arisen as the respondents had started misappropriating the funds of the main cinema business as well. He also moved an application (IA.4123/97) praying for interim injunction restraining the respondents from incurring in any manner any expense on behalf of the partnership firm exceeding Rs.500.00 and restraining them from making any payment exceeding Rs.500.00 except by cheque and for directions to the respondents to deposit the daily proceeds of the cinema in the bank account of the firm.