SURUCHI CHAND Vs. NARESH CHAND

JUDGEMENT

(1.) PETITION admitted and taken up for final hearing by consent of the parties forthwith. This is a petition under Section 30 read with sections 16 and 33 of the Indian Arbitration Act, 1940, challenging the Award made and published on 15th September 1996 by the Joint Arbitrators viz. Justice P.N.Bhagwati (Retired Chief Justice Supreme Court of India) and Justice V.D.Tulzapurkar (Retired Judge of the Supreme Court of India). The principal grounds upon which the award is challenged are set out in para 1A Clauses (A) to (F) of the petition.

(2.) RAMESHCHANDRA , Respondent No.1 - Naresh Chand and respondent No.5 - Mahesh Chand - have been real brothers. Petitioner No.1 - Mrs.Suruchi Chand is the widow of Rameshchand, while petitioner Nos. 2 and 3 are daughters of Ramesh Chand. Ramesh Chand died on 18th December 1986 in a tragic car accident at Taloja. Respondents Nos. 2, 3 and 4 are members of family of Respondent No.1 - Naresh Chand. Respondents Nos. 6 to 21 are the members of family of Respondent No.5 -Mahesh Chand. Out of them, Respondent No.18 died on 2nd March 1994. Respondents Nos.22 to 31 are companies and firms of the said family. Through out earlier, even before the Arbitrators these familities as described as follows : (1) Petitioners as Ramesh Chand Group (2) Respondents Nos. 1 to 4 as Naresh Chand Group and (3) Respondents Nos. 5 to 21 as Mahesh Chand Group. It would, therefore, be convenient to use the same terminology here in this judgment. The main business of the said companies of the families related to glass industry, which was started by father Kishen Chandra.

(3.) IN the meeting held on 21st August 1995, the parties agreed before the Arbitrators that they need not give any reasons for making the award and, therefore, the Arbitrators proceeded to make non-speaking award. However, Arbitrators noticed that WIG was not a party before them but the parties to the arbitration proceeding agreed that value of the interest of Ramesh Chand Group to the extent of 28% should be determined and, therefore, the Arbitrators held that the same forms part of record before them. The parties filed their submissions before the Arbitrators and the learned Arbitrators after consideration of the entire matter directed payment of Rs. 4,41,000/- to the petitioners as and by way of compensation for their 1/3rd share in the business and 28% interest in the WIG. This amount was directed to be paid by MGW and KGF in the proportion of 30% AND 70% respectively. In regard to firm of M/s Kemenar Enterprises, value of the same was determined at Rs.4,50,000/- and 1/3rd thereof viz., Rs.1,50,000/- was directed to be paid by Keyee Investments P.Ltd. to the petitioners in addition to the above amount of Rs.4,41,000/-, on such payment of Rs.1,50,000/- the firm of M/s Kemenar Enterprises was directed to stand dissolved from the date when payment is made by Keyee Investments P.Ltd. There were certain other ancillary directions given by the Arbitrators relating to transfer of shares and execution of Deeds in that behalf. The learned Arbitrators also created charge for the amount payable to the petitioners over the property at Hyderabad described in Annexure to the Award. This award was made and published on 14th September 1996 and that is how the same is challenged in the present petition.