RAKESH KHANNA Vs. VISHWANATH KHANNA

JUDGEMENT

(1.) This is a petition under Section 8(1)(b) of the Arbitration Act, 1940; hereinafter referred to as "the Act", wherein prayer made is to appoint an Arbitrator to fill up the vacancy created on the refusal to act by one of the Arbitrators and to pass such other order, as may be deemed fit in the facts and circumstances of the case.

(2.) The parties to the petition are members of the same family. The petitioner Rakesh Khanna and respondents 2 and 3, Shri Rajesh Khanna and Shri Mahesh Khanna are the three sons of respondent No. 1, Shri Vishwanath Khanna. Respondent No. 4, Smt.Brij Rani Khanna is their mother and wife of Shri Vishwanath Khanna. Respondents 5,6 and 7 respectively are the wives of respondents 2,3 and the petitioner. Respondents 8 and 9 are the two sons of respondent No. 2. The entire controversy between the parties, which is subject matter of this petition along with other two connected petitions, namely, O.M.P.46/94 titled as Rakesh Khanna v. Vishwanath Khanna and Others and O.M.P.No. 93/94, titled as Vishwanath Khunna v. Rajesh Khanna and Others revolves around the agreement dated 19th February, 1994.

(3.) It is not in dispute that Shri Vishwanath Khanna constituted Joint Hindu Family along with his wife, sons, daughter-in-laws and grand children, namely, the petitioner and respondents 2 to 9, which Joint Hindu Family styled as M/s. Vishwanath Khanna and Sons (H.U.F.). Owned joint family properties, both movable and immovable. Some of the members of the family separately carried on distinct and independent contractual partnership business and some of the members of the family are also holding shares in their own rights in various companies constituted under the Companies Act, 1956. It is also not a matterof controversy that disputes and differences arose amongst the parties regarding mode and manner of partition. When all efforts failed it is alleged that an agreement dated 9th February, 1994 was entered into. Parties to the agreement agreed to refer all disputes/ differences, in totality, with respect to the mode and manner of the partition and their respective shares to the arbitration of Shri Vijay Nand Maker and Shri Kamal K.Kapur, both of whom are the son-in-laws of Shri Vishwanath Khanna. It is also not in dispute that the two Arbitrators entered upon reference through their letters addressed to the parties on 19th February, 1994 and some proceedings were also held by the Arbitrators, who with the consent of the parties also appointed Shri Ravi Khanna as the Umpire. Parties to the agreement agreed and extended the period for making the award till 19th October, 1994.