PUSHPA P MULCHANDANI Vs. ADMIRAL RADHAKRISHIN TAHILIANI

JUDGEMENT

(1.) BY this Appeal, the Appellants challenge the order dated 22-6-2001 passed by the learned single Judge of this court in Arbitration Petition No.432 of 1998. That Petition was filed under Section 34 of the Arbitration & Conciliation Act, 1996 (herein after referred to as "the Act") challenging the award dated 16th September, 1998 made by the sole-arbitrator. By her order dated 22-6-2001 the learned singe Judge dismissed the petition.

(2.) THE facts that are relevant for deciding this Appeal are that the parties to this Appeal entered into an agreement dated 31st December, 1996. The parties to that agreement described themselves as share holders of James Engineering Co.Ltd. They noted that there are disputes amongst them and they appointed one Mr.J.C. Bhatia as the sole arbitrator. It was stated that the disputes have arisen between the parties to the agreement, who were share holders of Jayems Engineering Co.Ltd. in regard to the matters relating to the aforesaid company as also interpretation of the Will dated 15th May, 1966 left by late Mr.Kimatrai Sanwalsingh Khushalani. It appears that initially the aforesaid company was the proprietary concern of the said Mr.Kimatrai Khushalani. The parties to the arbitration agreement were all related to him and that in the Will of said Mr.Kimatrao Khushalani there was provision made for distribution of his estate as also in relation to the affairs of the company. The parties to the agreement referred all the disputes and differences between them which were set out in schedule to the agreement to Mr.J.C.Bhatia, in whom the parties declared to have full faith and confidence. He was given full power and he was empowered to make an award without the presence of the legal representatives or the legal adviser. The learned arbitrator was given power to device his own procedure. He was also empowered to take services of auditors and chartered accountants etc. as he may find necessary. According to the agreement, he was to make an award within four months from the date of entering upon the reference. He was also not required to give any reason for the award that he would make. It was also provided that the arbitrator can proceed only on the documents and no oral evidence or oral submission will be necessary. In the schedule following twelve disputes were narrated, which were referred to the arbitrator:

(3.) THE present Appellants felt aggrieved by that Award. In particular, they were aggrieved by the decision of the arbitration of fixing the valuation of the Ensemble division of the Jayems Engineering Co.Ltd. at Rs.1,35,00,000.00 and also valuation of the shares of Jayems Engineering Co.Ltd. They were aggrieved by the decision of the arbitrator of giving option to Mr.Tarun Tahiliani and Mrs.Gayatri Parikh to purchase Ensemble division by paying only Rs.1,35,00,000.00. They were also aggrieved by the decision that the valuation of the shares of Mr.Tarun Tahiliani and Mrs.Gayatri Parikh was fixed at approximately Rs.94 lakh and Rs.95 lakh respectively. The award was challenged by the Appellants by filing a petition under Section 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as the Act) on various grounds.