SANTIRAM MULLICK Vs. HIRANMOY BAGCHI

JUDGEMENT

(1.) THIS is an application fort setting aside the Joint majority award of Four Arbitrators dated 6th February 1989 appointed terms of the partnership agreement (clause 13) dated 1.4.1987 by which the partnership business of the Chartered Accountancy Firm namely, R and Bagchi was reconstituted and the petitioner and the Respondent nos. to 3 was inducted as partners.

(2.) THE petitioner states as follows : Without raising any prior dispute and difference whatsoever the respondent no. 1 suddenly by his letter dated 22.11.1987 (at page 40 the petition)-appointed his arbitrator being the respondent no.4 are called upon other partners to appoint their arbitrators in terms of clause 13 of the Deed of Partnership dated 1.4.1987. THE disputes as referred to by the said notice are in regard to (a) Amount of income of the firm, (b) Diversion of income of the firm, (c) Secretion of the income of the firm, and (d) Withdrawals in excess of the share of the partnership. THEse were four alleged disputes referred to in arbitration by the said Respondent no.1. Incidentally, this was the reference on the basis of which the Arbitration proceeding commenced.

(3.) PETITIONER did not receive any of the notice either of appointment or of reference of this arbitration by other partners i.e. respondent nos. 2 and 3. No such letter was given at any point of time. By a letter dated 19-2-1988, the Respondent Nos. 4, 5 and 6 herein served a notice on the petitioner, the Respondent nos. 1, 2 and 3 and an ex-partner Sri S. P. Mukherjee. This was immediately objected to by the petitioner on the ground that this was a reference under clause 13 of the Partnership Deed dated 1.4.1987 and as such the said Sri Mukherjee cannot have any such right and/or authority to take part in this arbitration proceedings, he having had already retired.