ANAND AGARWAL Vs. BALRAM DAS

JUDGEMENT

(1.) Instant First Appeal From Order has been filed under Section 37 (1) (a) of Arbitration and Conciliation Act. 1996. [hereinafter referred to as the 1996 Act). It is directed against judgment and order dated 19.2.2001 passed in Arbitration Case No. 3 of 2001 filed under Section 9 of the 1996 Act. By the impugned order, the District Judge, Varanasi has allowed the application and has restrained the appellants from carrying on business of dissolved firm in the name and style 'M/s. Kanhaiya Swaran Kala Kendra' with its assets and using goodwill. By the impugned order, the Arbitrator appointed by the parties was also appointed Receiver to prepare inventory of the assets and stocks of the aforesaid firm. The Receiver was also directed to take the account books of the firm in his custody and to transact further business of the firm only if it is necessary for the winding up of the affairs of the firm. It was also ordered that Arbitrator will decide the dispute regarding damages, etc. which have been claimed when he decides the disputes and gives his award.

(2.) Sri T. P. Singh, learned counsel of the appellants and Dr. R. G. Padia, learned counsel for the respondent have been heard.

(3.) M/s. Kanhaiya Swam Kala Kendra is a registered partnership firm. The four appellants and the respondents are partners therein. A deed of partnership was executed on 7.11.1983 Incorporating the terms and conditions of the partnership. The partnership deed provides that in case any dispute arises amongst the partners, the same shall be referred to sole Arbitrator. According to the plaintiff-respondent, the entire amount of profit which came to his share was not paid to him, that the firm took loans at higher rate of interest, that the appellant has manipulated the account books of the firm and that the appellants withdrew the money from the firm which was in excess in proportion to the amount paid to the plaintiff-respondent. The plaintiff-respondent, therefore. dissolved the firm with effect from 1.8.2000 by sending notice to the appellants on 20.7.2000.