ANAND UMASHANKAR GUPTA Vs. JAYANT MANIKLAL LUNAWAT

JUDGEMENT

(1.) By this appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 (for short 'Arbitration Act, 1996'), the appellants have challenged Order and Judgment dated 4 th May, 2009 delivered by the learned District Court, Pune in Civil Miscellaneous Application No. 809 of 2008 filed under Section 34 of the Arbitration Act, 1996 thereby allowing the application filed by the respondent and setting aside the arbitral award declared by the sole arbitrator on 16 th August, 2008 by which the arbitrator had allowed certain claims made by the appellants.

(2.) Some of the relevant facts for deciding the issue involved in this appeal are as under :-

(3.) By an agreement and Power of Attorney dated 12 th March, 2004, M/s.Aman & Anand Associates, the partnership firm then consisting of the appellant and Mr.Anand and Shreya Mehkari acquired development rights in respect of the property bearing Survey No. 111, Hissa No. 11/1A admeasuring 21.5 R' 11/1B admeasuring 21.5 R and Survey No.112, Hissa No.1 admeasuring 13.56 R situate at Village Baner, Tal. Haveli, Dist. Pune. Thereafter other partners viz. Anand and Shreya Mehkari retired from the firm and the firm was renamed as M/s.Anand and Anand Associates. On 22 nd August, 2005, the respondent herein was admitted as a partner in the said partnership firm. The firm was renamed as "Sri Sri Gurudeo Reality ". The Memorandum of Understanding and Deed of Partnership was executed by and between the parties on 22 nd August, 2005. It was agreed that the net profits or the gross sales of the firm were to be shared in the ratio of 30% to the appellant and 70% to the respondent. The costs in advertisement, marketing and selling were to be shared by the parties according to their respective ratio of profit and loss. In the month of October, 2005, both the parties entered into a Supplementary Deed of Partnership. It was agreed that the period for completion of project was 30 months and in the event of any delay, the respondent would pay interest at the rate of Rs.12% per annum for the delayed period to the appellants on the market value of 30% of the total permissible constructed area.