JAGATJIT JAISWAL Vs. KARMAJIT SINGH JAISWAL

JUDGEMENT

(1.) IN this petition under Section 9 of the Arbitration and Conciliation act, 1996 (referred to as 'the Act' hereinafter), the preliminary objection raised by the respondents before me that needs to be determined is, whether clause 9 of a Memorandum of Family Settlement (MOFS) dated 3. 3. 2000 entered into between the parties tantamount to an arbitration agreement. If it contains an Arbitration Agreement, as contended by the petitioners, the present petition would be maintainable, but if it does not contain an arbitration Agreement as argued by the Respondents, the present petition would fail as not being maintainable.

(2.) THE facts giving rise to the present petition insofar as they are necessary to determine the preliminary issue may be noted. The Petitioner no. 1 and the Respondent No. 1 are brothers and the sons of Late Mr. L. P. Jaiswal. Further, Petitioner No. 2 and Respondent No. 2 are the wives of petitioner No. 1 and Respondent No. 1 respectively.

(3.) LATE Mr. L. P. Jaiswal founded M/s Jagatjit Industries Ltd. in the year 1944. The petitioner being one of the sons of late Shri L. P. Jaiswal headed the management of the said company since 1977. However, it appears that in the year 1999 disputes arose between the family members of late Shri l. P. Jaiswal including petitioner No. 1 and respondent No. 1. Litigation was initiated in this Court as well as courts in Kapurthala in the year 2000. However, these suits came to be withdrawn in November, 2003. The petitioners state that the withdrawal of the suits was prompted by, inter alia, an oral agreement reached between the parties herein on 2. 3. 2000 which was later reduced to writing as the MOFS on 3. 3. 2000. Petitioner No. 1 Mr. Jagatjit Jaiswal and his wife on the one hand, and respondent No. 1 mr. Karamjit S. Jaiswal and his wife on the other hand, represented themselves and their family members respectively in the MOFS and were referred to as JJ Family Group and KSJ Family group respectively.