G S KUSHWAHA Vs. INDUSTRIAL AIDS

JUDGEMENT

(1.) Certain disputes had arisen between the parties. Mr.Justice P.N.Khanna(Retd.) of this court was appointed as the arbitrator. He made and published his award dated 19/02/1990 and filed the same in this court. As per the this award, the arbitrator awarded a sum of Rs.5,50,000.00 together with interest at the rate of 18 per cent p.a. to the petitioner. The arbitrator also held that the respondents 2-6, who were partners of the respondent No.1, were to pay all liabilities and were allowed to retain and recover all assets of the partnership firm. The petitioner was also one of the partners and in fact Managing partner of the respondent No.1 firm. On receipt of the award, notice thereof was issued to the parties for filing the objections, if any, within the statutory period. The respondents 3 to 5 filed objections to this award under Sections 30 & 33 of the Arbitration Act, 1940 vide IA No.10029/90. It is not necessary to go into these objections as the case has taken a different turn during the proceedings.

(2.) The petitioner had filed IA No.481/93 under Order XXIII Rule 1 Code of Civil Procedure, inter alia, stating that he had compromised with the respondents and that he had gone through the accounts and taken the entire accounts and the position as it stands. He had agreed to take over all assets and liabilities of the respondent No.1 firm. It was also stated in this application that the respondents had paid a sum of Rs.6 lacs to him in full and final settlement of his share and the respondents would not be responsible for any of the liabilities of whatsoever nature of the partnership firm. However, the petitioner did not press this application and made an oral prayer to withdraw this application which was allowed to be withdrawn vide order dated 2/03/1993. The respondents filed SLP challenging this order which was dismissed by the Supreme Court. Thereafter, the respondents 3 to 5 filed IA No.10408/93 stating that as the petitioner's claim stands satisfied under the award made by the arbitrator, nothing survives in this suit which had become infructuous. On this application order dated 24/03/1999 was passed posing the question which was required to be answered in this case. It would be appropriate to reproduce this order which is in the following words:

(3.) Put up on 5.8.1999.