PALLAV VIMALBHAI SHAH Vs. KALPESH SUMATIBHAI SHAH

JUDGEMENT

(1.) In this arbitration petition, the petitioners who are parties to an ongoing arbitration proceeding, have questioned the appointment of one Shri Archish Kiritkumar Shah nominated to the Arbitral Tribunal by the respondents. This petition arises in the following factual background.

(2.) The petitioners herein and the respondents had entered into a partnership agreement dated 24.3.2003 for the purpose of carrying out the business of manufacturing plastic products in the name of M/s. Plastic Products Engg. Co. It is not necessary to dwell at length on other terms and conditions of the said agreement. The only clause of the partnership agreement of our interest is the arbitration clause which provided as under:

(3.) Multiple disputes arose between the partners of the said firm splitting them into two groups. The present petitioners comprised one group and the respondents the other. To resolve such disputes, the respondents issued a notice dated 1.10.2010 activating the arbitration clause by appointing one Shri Dinesh P. Shah, a Chartered Accountant, as their nominee to the Arbitral Tribunal. By a reply dated 4.11.2010, the petitioners raised multiple issues but eventually without prejudice to such disputes, nominated one Shri S. Ruparel, a Chartered Accountant, as their nominee to the Arbitral Tribunal. It appears that for some reason, Shri S. Ruparel was unable to continue to act as an arbitrator and, therefore, was substituted by Shri Sakar Sharma, a Chartered Accountant, by the petitioners. These arbitrators could agree to the choice of the Presiding Arbitrator. The respondents therefore, filed Arbitration Petition No.56/2010 in which by an order dated 28.1.2011, Shri M.S. Parikh, former Judge of the High Court, was appointed as the Presiding Arbitrator.