C P ADAM Vs. E V AHAMMED KOYA

JUDGEMENT

(1.) Since the issues raised in these appeals and revision petitions are common, as agreed to by the parties we are disposing of the same by this common Judgment.

(2.) An agreement for sale was executed on 12th February, 1984 between one Botha Van Ingen for himself and on behalf of his sons who were coowners of an estate and one E. V. Ahmed Koya for himself and as power of attorney of one Bava Moopan. As per the agreement, total consideration was Rs. 1.35 crores, 10 per cent of which should be deposited as escrow in the name of Mr. T. K. Lakshmina Iyer, lawyer of Botha Van Ingen, for sale of an estate in Wayanad District called "Brahmagiri 'B' Estate". On 20th February 1984, agreement dated 12th February 1984 was modified and Bava Moopan was replaced by G. P. Adam as Managing Partner of M/s C. P. Adam. In terms of the agreement, Rs. 6.75 lakhs each was deposited by C. P. Adam and Bava Moopan in the Savings Bank Account No. 4196 of State Bank of India, Kallai Branch, Calicut in favour of the lawyer of Batha Van Ingen. The sale did not take place as per the agreement. On 28th December 1984, it is stated that an award was passed by three Arbitrators ia the dispute among the partners of the firm "Brahmagiri Estate and Produce Company" with respect to the agreement of sale dated 20th February 1984 between Botha Van Ingen and E. V. Ahmed Koya. The award directs partners 1 to 8 of the firm "Brahmagiri Estate and Produce Company" to pay the partners 9 to 12, viz., E. V. Ahmed Koya, K. P. Mohammed Ashraf, K. P. Amina, K. P. Najuma and K. P, Fathima, a sum of Rs. 8,75,000 in full settlement of all rights and claim of partner; 1 to 12 in the firm and its assets and also of all the rights of E. V. Ahmed Koya under the agreement dated 20th February 1984 including the claim of amounts spent by E. V. Ahmed Koya. A supplementary award was also passed, directing the payment of Rs. 6,75,000 in favour of certain persons.

(3.) On 2nd April 1985, the lawyer of Botha Van Ingea Sri T.K. Lakshmana Iyer informed E. V. Ahmed Koya, C. P. Adam and Bava Moopan that the agreement is cancelled and the escrow amount less the fee of Rs. 4,00,000 and other expenses to the tune of Rs. 50,000 will be returned on giving full and proper settlement receipt. C. P. Adam replied denying any liability to the lawyer and demanded return of full amount,Sri Lakshmana Iyer agreed, by letter addressed to G. P. Adam, dated 22nd April 1985, to give up his claim of Rs. 4,00,000. It is seen that in the letters written by C. P. Adam or Lakshmana Iyer, lawyer of Botha Van Ingen there is no mention of any arbitration agreement or arbitration award.