MANISH GUPTA Vs. RAM DASS

JUDGEMENT

(1.) Petitioners filed this petition under Section 11 of the Arbitration and Conciliation Act, 1996 (for short the "Act') seeking appointment of arbitrator to adjudicate the disputes referred to in para No.13 of the petition which respondents 1 & 2 and respondent No.3 have contested by filing replies.

(2.) Copy of partnership deed filed alongwith petition would show that firm-Shankar Lal Rishi Kumar was constituted on 1st April, 1993 with Ram Dass, M/s.Ram Dass Sharma & Sons, HUF, Smt.Pushpa Gupta, Smt.Preeti Gupta, Yogendra Sharma and Munish Gupta as partners thereof, to carry business of Shawls at 85, Moti Bazar, Chandni Chowk. Smt.Pushpa Gupta died on 5th December, 1997. Rajiv Gupta, petitioner No.3 and Pankaj Gupta, respondent No.4 are the legal heirs of Smt.Pushpa Gupta, deceased. Petitioners 1 & 2 and respondents 1 to 3 are the other partners of said firm. Clause 18 of aforesaid partnership deed provides that all disputes and matters relating to the firm beyond the mutual decision between the parties shall be referred to an arbitration as per the Arbitration Act, 1940. Paras 8 & 9 of the notice dated 9th November, 1998 sent by the petitioners through counsel to respondents 1 to 3 also filed alongwith petition (at pages 39 to 42) read as under;-

(3.) Main thrust of argument advanced by Sh.R.P.Bansal appearing for respondent No.3 and Sh.S.K.Tiwari for respondents 1 & 2 was that as clause 18 of the said partnership deed is silent about the number of arbitrator to be appointed, a sole arbitrator would be appointed. Since said notice dated 9th November, 1998 is not in accordance with the provision of sub-section (5) of Section 11 of the Act, this petition is not legally maintainable. Section 11(5) which is material, is reproduced below;-