GURUCHARAN SINGH SAHNEY Vs. HARPREET SINGH CHHABRA

JUDGEMENT

(1.) This application is filed under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 praying the Court to appoint a sole Arbitrator for resolution of the dispute between the applicants and the respondents arising out of settlement deed dated 30.04.2012.

(2.) In the affidavit filed in support of the application, applicant No.2 stated that the applicants and the respondents are close relatives. There are financial transactions between them personally and through M/s. Palace Motors Private Limited and M/s. Palace Iron and Steel Private Limited. In the course of their financial transactions, differences arose, which led to the applicants and the respondents filing cases and counter cases.

(3.) Applicant No.2 further stated that the respondents had taken a loan of Rs.20.00 crores from and they issued cheques for Rs.14.91 crores and when the presented the cheques issued by them in their bank at Delhi, they were dishonoured. Therefore, they filed cases under Section 138 of the Negotiable Instruments Act. While so, after lapse of nearly one and a half years, the respondents filed private complaint on the file of II Additional Chief Metropolitan Magistrate, Hyderabad, which was referred to the Police Station, Abids, who registered the same as Crime No.27/2012. Thereafter, it was transferred to CCS, Hyderabad, who numbered it as Crime No.59/2012, for the offences punishable under Sections 420, 465, 467, 471, 406, 408, 409, 192 and 120(b) I.P.C. and also under Sections 65, 66, 71, 72, 73 and 74 of the Information and Technologies Act, 2000. Himself and applicant No.5 were arrested and remanded to judicial custody. While they were in judicial custody, the respondents approached him and applicant Nos. 1 and 3 and forced them to execute settlement deed dated 30.04.2012 and obtained 35 cheques for Rs.25.00 lakhs and also collected Rs.25.00 lakhs. Thereafter, after their release on bail, the respondents forced them to execute necessary document, ratifying the settlement deed dated 30.04.2012. Accordingly, they executed the ratification deed on 03.05.2012.