CONCRETE DEVELOPERS LLP Vs. GAURAV CHURIWAL

JUDGEMENT

(1.) The present appeal, filed under Sec. 37 of The Arbitration and Conciliation Act, 1996, is from an order passed by a learned sole arbitrator on 17/4/2023. The impugned order is an interim order and was passed in an application filed by the respondent no. 1/claimant under Sec. 17(1) of the 1996 Act whereby the appellant was directed to deposit Rs.6.00 crores in a separate interest - bearing account in the name of the Limited Liability Partnership (LLP) namely Concrete Developers LLP.

(2.) The LLP was constituted pursuant to an Agreement dtd. 24/11/2015 for the purpose of developing a high-end real-estate project - "Raghu Estates" in Alipore, Kolkata. The project had a developer's allocation of 16 flats of the total number of flats constructed for the project. The Certificate of Completion in respect of the project was granted on 19/1/2019.

(3.) The respondent no. 1 (claimant in the arbitration) is the son of one Pawan Kumar Churiwal, who was the single - largest share-holder and one of the three designated partners of the LLP holding 33.40% share in the LLP. Pawan Kumar Churiwal passed away on 12/1/2021. The respondent no. 1 sought to be inducted in the LLP pursuant to clause 22(v) of the LLP Agreement after the demise of Pawan Kumar Churiwal. The other partners (appellants before this Court) refused to induct the respondent no. 1 / Gaurav Churiwal as the partner in the LLP. Gaurav Churiwal filed the statement of claim for an award including a direction on the respondents (appellants here) to induct Gaurav Churiwal in the LLP. The respondent no. 1 / claimant also prayed for the financial statements which were unilaterally prepared by the appellants and for drawing up of a fresh account of profit and loss of the LLP after taking into account the sale proceeds of the inventories including the flats of the project of the LLP.