KISHAN GUPTA Vs. RAM BABU GUPTA

JUDGEMENT

(1.) An order making reference of dispute between the parties to arbitration passed by the Court below is under challenge in this appeal,

(2.) In order to understand the controversy in its correct perspective, it will be necessary to have some facts forming the background of the parties' relations and all the controversy between them. Admittedly the parties are real brothers and they along with their father Pyare Lal used to carry on partnership business along with Rajendra Kumar under a Deed of Partnership dated 31st April, 1964. The business that they carried on was under the name and style of M/s. Indian Industries and Steel Company. This business continued upto 15th of October, 1973 when Rajendra Kumar retired from the firm and the remaining three partners reconstituted themselves into a partnership firm on 16th October, 1973, each having 1/3rd share in the profits and losses. The father Pyare Lal died on 25th February, 1977 and subsequently there was again reconstitution of the partnership on 1st April, 1977. This time two partnership deeds were executed between the parties, each having half share in two partnership businesses, one in the name of Indian Industries and Steel Company and the other was Cloth business in the name of M/s. Raghunath Prasad Pyare Lal.

(3.) According to the plaintiff this firm has not been dissolved so far and on the basis of one of the terms in the partnership deed, he sought dispute regarding accounts between the parties to be referred to arbitration. The case of defendant-appellant, however, was that as from 1st April, 1982 both the partnerships were dissolved and there was a partition amongst the brothers as a result whereof the plaintiff-respondent was allotted cloth business and he entered into a fresh Deed of Partnership with his son Ajay Kumar and ever since they alone are carrying on business. Similarly the Steel business was allotted to the defendant-appellant and he also entered into a fresh partnership with his two sons on the same date and ever since the Steel business is being carried on by them exclusively.