GEETARANI MOHANTY Vs. STATE OF ORISSA

JUDGEMENT

(1.) These two Writ Petitions have been filed by the Petitioner to quash the proceedings initiated by Opposite Parties 2 to 4 which was registered as Civil Suit Nos. 22 and 24 of 2008 before the Learned Civil Judge (Senior Division), Champua. Since the challenge made in these Writ Petitions are similar and the parties are same, both were heard together and are being disposed of by this common Judgment.

(2.) FOR convenience, the factual backdrop of the case from W.P.(C) No. 7559 of 2008 is stated below: The Petitioner -Smt. Geetarani Mohanty along with Opposite Parties constituted a partnership firm in the name and style of M/s. Geetarani Mohanty on certain terms and conditions. Petitioner applied to the Government for grant of permission to transfer the mining lease in favour of the partnership firm. Government accorded the permission on 17.10.1992 and pursuant to the same, a tripartite transfer deed in Form -0 was executed between the Petitioner -Smt. Geetarani Mohanty (the original lessee), M/s. Geetarani Mohanty (the partnership firm) and the Government of Orissa (the lessor). Thereafter, Opposite Party No. 2 obtained some documents fraudulently behind the Petitioner -Smt. Geetarani Mohanty and those documents are a deed of retirement of the Petitioner - Smt. Geetarani Mohanty from the said partnership firm executed on 31st March, 1993 and a letter of resignation from the partnership firm on 3.8.1998 relinquishing her share in favour of Opposite Party No. 2 and illegally and unauthorisedly formed another partnership firm on 1.4.1993 comprising of himself, his father -Dushasan Sahoo and wife Smt. Suprasanna Sahoo, Opposite Parties 3 and 4 respectively. Said partnership firm continued in the name of the old partnership firm i.e. M/s. Geetarani Mohanty. Opposite Party No. 2 filed a suit before the Learned Civil Judge (Junior Division), Bhubaneswar against the Petitioner Smt. Geetarani Mohanty seeking a declaration that the Defendant was not a partner of Plaintiff's partnership firm M/s. Geetarani Mohanty and for permanent injunction restraining the Defendant from interfering with the business operation and administration activities of the firm and its ore mining area described in the schedule of the plaint. The said suit was registered as C.S. No. 49 of 2006. When the Petitioner received notice in the said suit, she came to know about the aforesaid fraudulent act committed by Opposite Party No. 2. In the said suit, the Petitioner appeared and stated that since the partnership deed dated 3.8.1991 is having a Clause of arbitration, the Learned Civil Judge (Junior Division), Bhubaneswar has no jurisdiction to entertain the suit as the same is barred by the provisions of the Arbitration and Conciliation Act, 1996. The Court below passed an order of status quo which was subsequently vacated. The Petitioner in order to safeguard her leasehold rights filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 before the Learned District Judge, Khurda through her power -of -attorney holder, who has filed the present Writ Petition. Said application was registered as ARBP No. 15 of 2008. The Learned District Judge, Khurda allowed the said application on 17.3.2008. Being aggrieved by the said order, Opposite Party No. 2 and Opposite Party Nos. 3 and 4 filed two separate Arbitration Appeals before this Court which have been registered as ARBA No. 7 of 2008 and ARBA No. 9 of 2008 and the same are pending for disposal. This Court on 20th March, 2008 directed that the interim order passed by the Learned District Judge, Khurda shall remain in force. The Petitioner filed another Writ Petition, i.e. W.P.(C) No. 5537 of 2008, praying for strict implementation of the grant dated 13.11.1993 as per the Government Grants Act in order to enforce her leasehold rights. In the said Writ Petition, by an Order Dated 21st April, 2008 a Division Bench of this Court directed that the Government Order Dated 17.10.1992 shall continue till 12th May, 2008 and the said order will not in any way affect the pending proceedings between the parties either before the Civil Courts or before the Appellate forum of this Court in proceedings under Section 9 of the Arbitration and Conciliation Act, 1996. While the matter stood thus, Opposite Parties 2 to 4 again filed a Civil Suit No. 22 of 2008 before the Learned Civil Judge (Senior Division), Champua on 22.4.2008 with the following prayers; A. that a decree of declaration to be passed declaring the purported power of attorney dated 16th November, 2007 executed by the Defendant No. 1 in favour of the Defendant No. 3 as void and deliver the original to this Hon'ble Court for cancellation and whereupon to cancel the said power of Attorney; B. pass a decree of permanent injunction restraining the Defendant No. 1 from exercising any right whatsoever in relation to Plaintiff firm pursuant to the partnership deed dated 3rd August, 1991 or in connection therewith and the Plaintiffs Firms assets and business including the mining lease whether directly and indirectly through any servant, agent, relatives, corporate entity or otherwise; C. pass a decree of permanent injunction restraining the Defendant Nos. 3 and 4 and/or their servants, agents, representatives or any corporate entity in which either of or both Defendants 3 and 4 have or ever held any shares or are directors in the board, from in any manner acting on the power of attorney dated 16th November, 2007 or in respect of any alleged claim of the Defendant No. 1 as a partner or otherwise in the Plaintiff No. 1 firm in any manner whatsoever including in connection with the partnership deed dated 3rd August, 1991. D. pass a decree of permanent injunction restraining the Defendants Nos. 3 and 4 and/or their servants, agents, representatives from in any manner whatsoever obstructing or interfering with the Plaintiffs right to carry on business of the Plaintiff No. 2 firm including, in respect of the mining lease....

(3.) OPPOSITE Parties 3 and 4 also filed another suit on 5.5.2008 before the Learned Civil Judge (Senior Division), Champua which was registered as Civil Suit No. 24 of 2008 with the following prayer; a. pass a decree declaring the Plaintiff Nos. 1 and 2 as valid and rightly partners of the partnership firm, M/s. Geetarani Mohanty having share of 25% each in respect of the said partnership firm; b. Pass a decree of permanent injunction against Defendant No. 3 restraining her, her agents, assigns and representative not to interfere with the smooth and peaceful running of the business of the partnership firm M/s. Geetarani Mohanty in any manner whatsoever; c. pass a decree imposing exemplary cost for losses and damages sustained by the Plaintiffs and Defendant No. 1 firm....