R C BHALLA Vs. N C BHALLA

JUDGEMENT

(1.) M/s. H. R. Bhalla and Sons (P.) Ltd (in short H. R. B.) was a family concern of late Shri H. R. Bhalla, father of the plaintiffs and defendants 1 to 3. After his death, disputes arose between the plaintiffs and defendants 1 to 3 with regard to the business affairs and the properties. All the parties by an agreement dated 7/04/1984 appointed Sh. P. N. Khanna (retired Judge of this Court) as the Sole Arbitrator, to adjudicate the disputes arisen between the parties. The Arbitrator made his award on 25/12/1984 which was called the Interim Award. Petitioners filed a petition which was listed as OMP. No. 205/85. This Court after hearing the parties on the said interim Award observed that since the parties could not arrive at any decision hence the implementation of the interim award became difficult. Therefore, with the consent of the parties, the award was remitted to the Arbitrator vide order dated 23/05/1985 to decide the manner in which and the time when the division of assets would take place because in the Interim award the Arbitrator had in fact left these decisions open. It was further observed that since parties had failed to arrive at any agreed scheme hence time has come for the Arbitrator to give decision regarding the division of assets and liabilities of H. R. B. Since the panics had principally agreed to abide by the Interim Award, therefore, hence directions were given to the Arbitrator to ensure that the interim award was implemented in letter and spirit.

(2.) AFTER the matter was remanded, the arbitrator heard the parties. AFTER hearing the parties, the Arbitrator made and published the impugned award called the final award on 24/04/1986.

(3.) BY the final award dated 24/04/1986 the Arbitrator has held that the company Mechanical Movement Pvt. Ltd. is already and shall henceforth be in the control and charge of NCB, SCB and ACB. The shares held by RCB and PCB to be transferred immediately in favour of NCB, SCB and ACB or their nominees against full payment of their face value. RCB and PCB shall also immediately deliver to NCB, SCB and ACB all the documents, registers etc. pertaining to the business and affairs of Mechanical Movements (P.) Ltd. NCB, SCB and ACB shall procure from the company Mechanical Movements (P.) Ltd. a sum of Rs.2,50,000.00 as stipulated in the interim award, to be paid to RCB Rs. 50,000.00- out of this has already been paid. Balance of Rs. 2 lakhs is to be paid in instalments stipulated therein and Rs.7,500.00 to PCB. These amounts when paid were to be in full and final payment of all their claims against the said Company Mechanical Movements (P.) Ltd. and against NCB, SCB and ACB.