MOOLCHAND Vs. KASHIPRASAD SHUKLA

JUDGEMENT

(1.) THIS appeal arises from an application for setting aside an award. The 2nd additional District Judge, Jabalpur, allowed the objections and set aside the award. The appellants are aggrieved by that decision.

(2.) THE parties constituted a partnership firm for supply of material to the Army. The firm existed from March, 1943 to June 1945. Certain disputes arose between the parties. On 14 April, 1047, the parties entered into an agreement to refer their disputes to arbitration. Shri S. C. Upadhaya and Shri N. M. Golvalkar, Advocates were appointed arbitrators by the parties. On the same date, the parties made an application under Section 20 of the Arbitration Act in the Court of the Additional district Judge, Jabalpur, for making a reference to the said arbitrators for decision on the disputes referred to in the agreement. A reference was accordingly made.

(3.) WE have carefully gone through the award. The learned arbitrators first found out what business the partnership did. Secondly, they found that the accounts of the partnership upto 30th June, 1944 had been finally settled between the parties. Thirdly, they found that after 30th June, 1944, Kashiprasad carried on the business single-handed. Fourthly, they found that the net profits of the partnership on 30th June, 1944 were Rs. 4,402. Fifthly, they found that the accounts subsequent to 30th June, 1944 were to be explained by Kashiprasad, but the accounts produced by Kashiprasad were not reliable, and they were rejected. Likewise, the accounts (Exs. X and Y) in connection with the onion business were also held unreliable. Sixthly, in the absence of reliable accounts the arbitrators decided to calculate profits on percentage basis. They adopted the basis as was adopted by the income-tax authorities. They calculated the profits accordingly and found that the appellants share in the profits was Rs. 20,025 and their 3/4th share in the amount of Rs. 44,000, which was the profit upto 30th June, 1944, came to rs. 33,000. Thus, the total amount of profits representing the 3/4th share of the appellants was Rs. 53,025. Deducting Rs. 20,000 already paid by Kashiprasad, the net amount which remained payable by Kashiprasad to the appellants was Rs. 33,025.