B.K. KAPOOR Vs. TAJINDER KAPOOR

JUDGEMENT

(1.) THE petitioners have challenged the order dated 8.1.2008 passed by the learned Civil Judge (Sr.Division), Faridabad dismissing an application moved by the petitioners under section 8 of the Arbitration and Conciliation Act, 1996 (for short the Act).

(2.) THE plaintiff respondent filed a suit for dissolution and rendition of accounts on the plea that the plaintiff and defendants No. 2 and 3 started partnership business under the name and style of M/s B. Kay Engineering Works on the basis of a partnership deed dated 1.4.1992. The plaintiff respondent claimed that as per the terms of the agreement the plaintiff was entitled to 18% of the profit in the first Rs. 75,000/-; 12% of the profit in respect of next Rs. 75000/- of Book Profit and 8% in balance amount of Book Profit.

(3.) NOTICE of the suit was issued to the petitioners herein who moved an application under section 8 of the Act claiming therein that the dispute raised in the suit is covered under the Arbitration Agreement executed between the parties i.e. Clause 16 of the Partnership Deed dated 1.4.19902 which reads as under :- " That in case of there being any dispute inter se the parties to this Deed none of the partners shall be competent to straight away rush to a court of law. The matter at the fist instance, shall be referred to a Board of Arbitrators constituted by one nominee of each party to this Deed. The unanimous decision of the arbitrators or the decision of majority of them shall be binding on the parties."