PRADEEP ARORA & ORS. Vs. SAMANTHA KOCHHAR

JUDGEMENT

(1.) The challenge in this petition under Sec. 34 of the Arbitration and Conciliation Act, 1996 ('Act') is to an Award dated 8th Aug., 2014 passed by the sole Arbitrator.

(2.) The background facts are that the four Petitioners and the Respondent entered into a p\nership agreement on 29th April, 2010 with a view to running a salon, spa and a health and fitness centre under the name and style of Urban Wellness Oasis. Under Clause 6 of the Partnership Deed, each of the parties i.e., the 4 Petitioners and the Respondent were to invest capital in accordance with their profit & loss sharing ratio or such proportions which may have been agreed to from time to time. Under Clause 8 of the Partnership Deed, a profit & loss sharing ratio was set out. While Petitioner Nos. 1, 2 and 3 as well as the Respondent had a share of 22.5% each, Petitioner No. 4 had a share of 10%. In proportion to their respective shares, the total investments made by the partners were as under: <FRM>JUDGEMENT_102_LAWS(DLH)11_2016.html</FRM>

(3.) The disputes as between the parties were referred to arbitration. The Respondent filed a claim petition whereas the Petitioners filed a counter-claim. One of the claims of the Respondent was for recovering a sum of Rs. 24,50,000 invested by her in the partnership business together with interest @ 12% on the capital contributions by the Claimant from the date of investment till the time of termination i.e. 22nd March, 2011 amounting to Rs. 2,04,280. Interest @ 24% was claimed from 22nd Sept., 2011 till the date of filing of the claim and future interest as well. The Respondent also claimed damages, loss of reputation and mesne profits to the tune of Rs. 10 lakhs.