V K NAYAR Vs. G P NAYAR

JUDGEMENT

(1.) The petitioner has filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the said Act) seeking reference of the disputes to arbitration.

(2.) The father of the petitioner and respondent no.1 were brothers. The dispute pertains to a partnership firm M/s Haryana Rang Udyog, respondent no.2. The partnership was originally constituted in 1966 with the petitioner as a partner to the extent of 90% share which got diluted over a period of time. The petitioner finally retired from the partnership firm on 12.5.1980. The firm was reconstituted on 10.3.1987 with respondent no.1 and the mother of the petitioner, late Smt.Padma Vati Nayar, as partners, with respondent no.1 having no rights in the assets of the firm. This was followed by an MoU being executed on 28.6.1997 having four parties. These parties were the petitioner, late Smt.Padma Vati Nayar, respondent no.1 and Mr.Sandeep Nayar, son of respondent no.1. The MoU, inter alia, provided for division of assets including immovable property in a particular manner between the parties. It is not necessary to go into the details of the mode and manner of division. Suffice to say that this MoU contained an arbitration clause in the following terms: 14.?The Understanding arrived at between the parties has been reduced in writing above. However, if there is any misunderstanding or dispute between the parties with respect to this Memorandum of Understanding, the parties will try to resolve their dispute in the following manner:

(3.) There was another MoU also executed on 8.4.1989, prior to the aforesaid MoU between the petitioner, late Smt.Padma Vati Nayar and the sisters of the petitioner for devolution of rights in favour of the petitioner to the exclusion of his sisters. Late Smt.Padma Vati Nayar also stated to have executed a Will dated 26.5.1987 making bequeath in favour of the petitioner. Late Smt.Padma Vati Nayar passed away on 23.1.2005.