P C GULATI Vs. LAJYA RAMKAPUR

JUDGEMENT

(1.) In order to appreciate the points involved in this appeal it is necessary to state certain facts.

(2.) On November 14, 1954 a lease-hold cinema plot measuring 5,043 -33 square yards, in Neighbourhood III of Lajpat Nagar, New Delhi, was auctioned by the Ministry of Rehabilitation, Government of India, and was jointly purchased by Partap Chand Gulati, Lajya Ram Kapur and Diwan Chand Kapur. After plans for construction of a cinema house on that plot were sanctioned by the Municipal Corporation, Delhi, the parties put into writing "what had been verbally agreed upon, in the form of an Agreement relating to the above co-ownership". That agreement was executed on June 5, 1961.

(3.) Unfortunately differences cropped up between the parties when the cinema building was nearing completion. As the agreement entered into between the parties provided, by one of its clauses, for settlement of all disputes by arbitration, Lajya Ram Kapur and his son Diwan Chand Kapur filed an application, under section 20 of the Arbitration Act, 1940, for appointment of an arbitrator and reference of the disputes between the parties to that arbitrator. That was on 14-5-1962. A few days later, on May 24, 1962, the suit out of which this appeal has arisen was instituted by Partap Chand Gulati for "dissolving the partnership and for rendition of accounts." According to the averments made in his plaint the agreement between the parties was of partnership for the purposes of constructing a cinema house on certain conditions and terms. His own share was stated to be 50% while Lajya Ram Kapur and Diwan Chand Kapur were mentioned to have 25% share each. At the end of the plaint a note was given that the suit had been "laid" without prejudice to his right to take criminal action against the defendants as also to sue them for damages.