DHARMATEJA BAR AND RESTAURANT Vs. NATHANI BHUPATHI RAO

JUDGEMENT

(1.) The 1st respondent herein had filed O.S. No.37 of 2006 before the II Additional District Judge (Fast Track Court), Vijayawada, for settlement of accounts in relation to a partnership firm, which is the 1st appellant herein. The appellants 2 to 4, who are the partners of this firm, were also arrayed as defendants 2 to 4 in the suit.

(2.) The appellants herein had filed an application in I.A. No.4592 of 2006 in O.S. No.37 of 2006 under Sec. 8 (1) of the Arbitration and Conciliation Act, 1996 [for short 'the Act, 1996'], contending that the alleged dispute would have to be referred to arbitration, in as much as, the partnership deed, relied upon by the 1st respondent, contained an arbitration clause. This application was dismissed by the trial court. Aggrieved by the same, the appellants moved the erstwhile High Court of Andhra Pradesh by way of filing C.R.P.No.4109 of 2007. It appears that the 1st respondent herein expressed no objection for reference of the dispute to arbitration.Recording this concession, a learned single Judge of the erstwhile High Court of Andhra Pradesh, by judgment, dtd. 20/3/2009, closed the civil revision petition granting liberty to the parties to approach an arbitrator for settlement of the disputes, if any.

(3.) Thereafter, the 1st respondent approached the trial court, in O.S.No.37 of 2006, by filing I.A. No.808 of 2010, ostensibly under Sec. 8(1) of the Act, 1996, to appoint an arbitrator for settlement of the accounts of the 1st appellant firm. This application came to be allowed by the trial court, by an order, dtd. 30/6/2010. The 2nd respondent, who was appointed under the said order as an arbitrator, issued notice to both sides and initiated arbitral proceedings. The appellants had initially appeared before the 2nd respondentarbitrator, through their advocate and sought time for filing pleadings.