MOHANLAL SAJANDAS Vs. HARESHKUMAR NARANDAS

JUDGEMENT

(1.) This petition is filed by the petitioners for appointment of Shri Otnamal Shamumal as Arbitrator and for referring the dispute difference between the parties for adjudication by allowing this petition. Prayer is also made to restrain the rescindments from conducting partnership business in the name and style of "Vinayk Cold Storage Company" and from transacting, dealing or transferring the property of Vinayak Cold Storage Company in favour of any other party.

(2.) The case of the petitioners was that petitioners and respondnts entered into a partnership deed on 30th March, 1996 and started business in the name and style of "Vinayak Cold Storage Company" at Jamnagar. Shares of all the partners were fixed under the said agreement. Clause 4 provides that partnership was "partnership at will". Clause 13 fixed shares of the partners and clause 21 provided that in case of difference or dispute, the matter shall be settled by arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996 . A copy of the partnership deed is at Annexure `A' to the petition.

(3.) It was stated by the petitioners that on 23rd February, 1999, respondent No.1 issued a notice through his advocate to the remaining partners alleging that though he was working with all sincerity, the other partners were not working with devotion. It was,therefore, not possible to carry on business in the partnership and as the partnership was partnership at will, in accordance with the provisions of Section 43 of the Partnership Act, the partnership shall be deemed to be dissolved with effect from January 31, 1999. By another notice dated 7th March, 1999, respondent No.1 clarified that there was an error of date in the notice which was issued earlier and in fact, partnership firm would stand dissolved with effect from 31st March, 1999 and not from 31st January, 1999.