PRATIBHA TUSHAR SANGHVI Vs. PARESH VINODLAL JHAVERI

JUDGEMENT

(1.) THE petitioners have sought to challenge an award passed in accordance with the clauses of the settlement arrived at between the parties in an arbitration. The award came to be passed on 16th December, 2013 against the petitioners as also respondent Nos. 4, 5, 6 & 7. The petitioners have challenged the award. Respondent Nos. 4, 5, 6 & 7 have not.

(2.) THE loan was taken by the firm of respondent No. 4 from respondent Nos. 1, 2 and 3. The two petitioners and respondent Nos. 5 & 6 were initially partners of respondent No. 4 firm. There have been certain disputes and it was contended by the petitioners that they were not partners at a certain time. Nevertheless respondent Nos. 1, 2 and 3 proceeded in arbitration against respondent No. 4 firm and all the four partners, petitioner Nos. 1 & 2 and respondent Nos. 5 & 6. The arbitration proceeded. Thereafter the parties settled their dispute under certain handwritten consent terms. The consent terms were executed on 26th November, 2012. They have been signed by respondent Nos. 1, 2 and 3 on the one hand and by petitioner Nos. 1 & 2 as also respondent Nos. 4, 5 & 6 on the other hand.

(3.) THE material part of the settlement was, therefore, that there was a decree on admission for the entire amount payable. The petitioners were to pay a part of the amount. That payment was to be by way of deposit. If that payment by way of deposit was not made, the petitioners would be liable to a decree against them for the entire amount due. Similar was the case with the other two partners on behalf of the firm. The claimants would, therefore, allow the parties to discharge their liability in a specified ratio if they honour that commitment. If they fail to honour that commitment the claimants would be entitled to proceed against either of the groups of parties.