G MOHANAN Vs. SARASWATHY

JUDGEMENT

(1.) This arbitration request is filed by the applicant seeking to appoint an advocate as arbitrator to resolve the disputes by and between the applicant and the respondent. Material facts for the disposal of the arbitration request are as follows:

(2.) The applicant and the respondent executed a partnership deed on 21.06.2013 and registered with the Registrar of Firms. As per the terms of the partnership, the applicant shall have a right to appoint his nominee in addition to the staff appointed by the respondents, and his nominee shall have full powers to verify all the accounts kept in the concern, at any time when the partnership continues, and also to make timely suggestions for the effective management of the partnership concern. According to the applicant, in violation of the above referred conditions of the partnership deed, the respondent has not allowed the applicant either to appoint his nominee or to verify the accounts kept in the concern, and is not sharing the profit as agreed. It is also contended that, petitioner has got material information that the respondents has transferred the immovable assets of the concern with a view to defraud and cheat the applicant. That apart, it is contended that, the respondent was carrying on the business of distribution of LPG Gas Cylinders of Bharat Petroleum Corporation Ltd. through her proprietary concern, "M/s. Chittoor Agencies Bharat Gas Distributors". The said agency had godown of its own. It was due to the interest expressed by the respondent in admitting a partner in the said Gas Agency, applicant entered into the partnership, and Annexure-A1 Partnership was constituted. According to the applicant, he had invested an amount of Rs.1,04,00,000/- for joining as a partner in the firm, and it was agreed to share the profits among the partners equally.

(3.) However, in utter defiance of the terms and conditions of the partnership deed, on 04.12.2013, respondent sold the property wherein the godown of the concern situates, by executing a sale deed in favour of one Sindhu, for a consideration of Rs.14,50,000/-. Therefore, according to the applicant, the applicant has already suffered considerable loss due to the respondent's dishonest and defrauding acts. Therefore, the applicant wishes to retire from the partnership after settling the accounts till the date of settlement, and thereafter he will be entitled to receive an interest at the rate of 12% per annum for his investment of Rs.1,04,00,000/-.