RAMAVTAR B. JAJODIA Vs. HONBLE MR.SHYAM LILANI

JUDGEMENT

(1.) By this petition filed under Section 14(2) of the Arbitration and Conciliation Act, 1996 (for short "the Arbitration Act"), the petitioners have prayed for termination of mandate of the learned sole arbitrator, the respondent no.1 herein on account of his alleged failure to act without undue delay in the arbitral proceedings commenced on 2nd July 2012 between the petitioners and the respondent nos.2 to 6. Some of the relevant facts for the purpose of deciding this petition are as under : -

(2.) It is the case of the petitioners that the petitioners are having approximately 12.5% shareholdings of Aakash Lavlesh Leisure Private Limited (for short "the said company"). The petitioners are co - shareholders of the said company with the respondent nos.2 to 5. The respondent no.6 is a company incorporated under the provisions of the Companies Act, 1956 and holds 50% shares of the said company.

(3.) On 22nd November 2006, an agreement was executed between the petitioners and the respondent nos.2 to 6 on the terms and conditions set out in the said agreement whereby the petitioners sold and transferred 50% shareholding of the respondent no.6 to the respondent nos.2 to 5. The dispute arose between the parties with respect to the management of affairs of the said company. On 13 th June 2012, the respondent nos.2 to 5 issued a notice to the petitioners calling upon them to do various acts. On 2nd July 2012, the respondent nos.2 to 5 invoked arbitration clause contained in the agreement dated 22 nd November 2006 and appointed the respondent no.1 as a sole arbitrator to adjudicate upon the dispute between the parties. On 13 th July 2012, the learned arbitrator accepted his appointment as a sole arbitrator to adjudicate upon the dispute between the petitioners and the respondent nos.2 to 5. Learned arbitrator accordingly vide their letter dated 13 th July 2012 fixed a preliminary hearing of the arbitration on 25 th July 2012. On 19th July 2012, the petitioners replied to the letter dated 13 th June 2012 addressed by the respondent nos.2 to 5 and denied the allegations made therein. The petitioners called upon the respondent nos.2 to 5 to withdraw the said notice.