RAJINDER NATH Vs. PREM NATH MOTORS LIMITED

JUDGEMENT

(1.) This petition under Section 9 of the Arbitration and Conciliation Act, 1996 ('Act') by Mr. Rajinder Nath seeks interim measures in relation to the disputes between the Petitioner and the Respondents arising out of a Partial Settlement Agreement entered into between the Petitioner and Respondents 2, 3 and 4 for division of the family businesses and assets. The background to the present petition is that late Mr. Prem Nath Bhel together with his sons Mr. Surender Nath, (Respondent No. 2) late Mr. Narender Nath represented by his wife Mrs. Vijay Bhel, (Respondent No. 3), late Mr. Devinder Nath represented by his wife Mrs. Surendri Bhel and his son Mr. Shivinder Bhel (Respondent Nos. 4A and 4B) and the Petitioner Mr. Rajinder Nath conducted business through various companies. Initially, late Mr. Prem Nath Bhel had set up a business of motor car agency and repair. Later, the family floated several companies including Prem Nath Motors Limited ('PNML'), Respondent No. 1, Prem Nath Diesels Private Limited ('PNDPL'), Prem Nath Motors Workshop Private Limited ('PNMWPL'), and four other companies. It is stated that all the family members held shares in the companies and had a direct and legal interest in the assets of the companies.

(2.) The present dispute concerns the premises owned by PNML and leased to it at Mandir Marg which comprised a large contiguous area consisting of entrance and parking, two storey administrative block, two sheds of about 5000 sq.ft. each and a large shed in the rear of about 35000 sq.ft. The said premises at Mandir Marg has been sub-leased to PNMWPL.

(3.) The Petitioner claims that his group, which comprises his wife and children, hold 28.4% shares in PNML. The rest of the shares are held by the other three branches of the family of late Mr. Prem Nath Bhel who died on 2nd October 1959. After disputes arose between the four branches of the family in 1988, several proceedings came to be instituted by the family members. In a petition heard by this Court an order was passed on 22nd September 1999 referring the disputes to the sole arbitration of Mr. Justice P.K. Bahri (retired). The learned Arbitrator was requested to decide by way of an interim Award the question of division of assets of the companies so that the parties could receive their respective shares.