ALKA CHANDEWAR Vs. SHAMSHUL ISHRAR KHAN

JUDGEMENT

(1.) This Contempt Petition is filed on the basis of the arbitration order dated 5th May, 2014 passed by the Sole Arbitrator under Section 27 (5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as "the Act").

(2.) The arbitration proceedings was filed before the Arbitrator vide Arbitration Application No. 80 of 2010 for dissolution of the partnership and the assets and share in the partnership. The Petitioner and the Respondent were the partners and a Power of Attorney was given to the exhusband of the Petitioner who has allegedly committed the fraud and forgery in respect of sending letter of dissolution of the partnership on behalf of the Petitioner. The Petitioner subsequently divorced her husband who was the Power of Attorney of the firm. The Petitioner thereafter filed the proceedings for her share before the Arbitrator against the Respondent. The learned Arbitrator has passed the interim order on 7th October, 2010 directing that the Respondent shall not dispose of the Flats. However, the Respondent entered into the registered agreement of sale in respect of five Flats in the said buildings on 14th October, 2010. Thus the order dated 7th October, 2010 was violated. Thereafter, the Petitioner moved an application No. "C1" for demanding the documents and the accounts for the last 10 years from the Respondent and also filed the interim application No. "C2" before the Tribunal for the appointment of Court Receiver to protect the Flats in one of the buildings constructed by the partnership firm. While deciding these applications, the Tribunal by its order dated 26th March, 2012 has directed the Respondent in operative clause (v) not to dispose off/ transfer/ alienate or create any encumbrance in respect of the unsold flats in the above building namely 'SarlaSadan'. It also directed the Respondent to furnish the bank guarantee in favour of the claimant to the tune of Rs. 1.25 Crore. However, that order of the Tribunal was not complied and the Respondent violated the said order.

(3.) The Petitioner moved an application before the Tribunal for reporting contempt to the High Court of the orders dated 7th October, 2010 and 26th March, 2012 and also prayed to strike off the defence filed by the Respondent. This application was moved on 19th November, 2013. In the said application, the Respondent appeared and defended its act. However, the Tribunal rejected the defence of the Respondent and held that Respondent had committed willful disobedience of the Tribunal's order dated 26th March, 2012 and held that it may deem appropriate to take necessary action under Section 27(5) of the said Act.