BHARAT BHUSHAN SETIA Vs. NIRMAL KANTA ETC

JUDGEMENT

(1.) Learned counsel for the petitioners contended that the principle of acquiescence could not be made applicable for dismissing an application for referring the dispute to the Arbitration and stay of the proceedings of the suit filed by the applicants-defendants.

(2.) In order to examine the merit of this contention, reference to basic facts would be necessary. Nirmal Kanta filed a suit for dissolution of partnership and rendition of accounts of the firm known as M/s Sunder Dass Setia Cotton Ginning and Pressing Factory situated at Mukatsar. Defendants No. 1 and 2 are alleged to be the partner of the partnership firm alongwith respondent No. 2 to 4. However, respondents No. 2 to 4 relinquished their rights in favour of defendants No. 1 and 2. Defendants No. 1 and 2 had reimbursed the plaintiff and her husband. Allegations of misappropriation and fabrication of the books of account and threatening of destruction of the accounts and property of the firm were made.

(3.) The suit was being contested and the defendants were called upon to file written statement. However, after seeking certain opportunities for the said purpose, the defendants No. 1 and 2 filed an application praying that in view of the clause 21 of the partnership deed executed between the parties, the dispute be referred for determination to the Arbitrator and the proceedings in the suit be stayed. This application of the defendants was contested by the plaintiff.