K.S. KLER Vs. H.S VEDI

JUDGEMENT

(1.) The central issue in these matters concerns an application being I.A. No. 22587 of 2014 filed by the Legal Representatives (LRs) of late Mr H. S. Vedi under Order 23, Rule 3 of the Code of Civil Procedure 1908 (CPC) praying that the suit and the companion petition arising out of arbitration proceedings be disposed of in terms of a Compromise Deed dated 28th Oct. 2007 executed by the parties.

(2.) Mr. K. S. Kler [the Plaintiff in CS (OS) No. 415-A of 1988 and Respondent No. 1 in OMP No. 147 of 1987], late Mr. H.S. Vedi (Defendant in CS (OS) No. 415-A of 1988 and the Petitioner in OMP No. 147 of 1987] and late Mr. K.K. Duggal were friends since the time they were students of architecture. They started a joint business in various countries including India, Sharjah, Bahrain, Iraq and Kuwait. All three were qualified Architects.

(3.) A Deed of Partnership dated 1st Jan., 1975 was executed between the three partners in respect of the firm under the name of 'Architectural Construction Team and Gulf Design Group' at Sharjah. A Supplementary Partnership Deed was executed on 1st July, 1983 between the three partners with the purpose of transferring the business of 'Architectural Construction Team and Gulf Design Group' to ACT Holdings (Jersey), which was incorporated in Jersey (England). It is stated that under Clause 17 of the Partnership Deed dated 1st July, 1983, it was provided that in the event of a partner dying, the surviving partners were to carry on the business and hold the share of the deceased partner's interest for the benefit of the children and widow of the deceased partner. Clause 19 contained an arbitration clause whereby disputes arising out of or in relation to the conduct of the business of the partnership were to be referred to arbitration by mutual agreement of the parties concerned.