SHOAIB ABDUL KADER Vs. ABDUL KADER

JUDGEMENT

(1.) These Petitions are filed under Sec. 37 of the Arbitration and Conciliation Act, 1996 ("the Act") challenging an order dated August 2, 2022 passed under Sec. 17 of the Act by a Learned Arbitral Tribunal, issuing a detailed framework of an interlocutory arrangement to be maintained between the parties during the course of the arbitration proceedings.

(2.) The Petitioner, Shoaib Abdul Kader ("Son") and the Respondent, Abdul Kader ("Father") are partners in multiple firms which essentially run resorts in wild life sanctuaries. The Son is an offspring from the Father and his first wife. These resorts are located in Jaipur, Bandhavgarh, Kanha and Dandeli. The resorts were founded by the Father and the Son has contributed to their running and he is thereby a partner and a stakeholder. Partnership deeds govern their relationship in respect of each of the resorts. Father and Son are party to a Memorandum of Understanding dated September 12, 2017 ("MoU") that re-arranges their ownership interests in these resorts.

(3.) Disputes and differences for purposes of these Petitions that are currently in play relate to the resorts located in Jaipur and Bandhavgarh. In terms of the MoU, the resorts at Kanha and Dandeli were to move exclusively to the Father, while the resorts at Jaipur and Bandhavgarh were to be 80% owned by the Son, with the Father owning 20%. On the demise of the Father, the 20% owned by him would move to the Son or persons nominated by him. The MoU provided for various steps by which the parties would rearrange their affairs in the aforesaid manner. The Son was required to vacate the existing office and relocate to a reasonably priced location to conduct the business of the two resorts. Current Liabilities until the cut-off date of September 1, 2017 were to be discharged in the ratio of 60% by the Father and 40% by the Son. Consideration for such re-arrangement, namely, the transfer of value differential between the respective swap of interests was to be discharged by the Son having to pay the Father 5% of the gross monthly sales, but after deducting taxes, for a period of two years from the resort at Jaipur.