DEEPAK ARORA AND ANOTHER Vs. VIJAY KHANNA

JUDGEMENT

(1.) This application under section 9 of the Arbitration and Conciliation Act, 1996 has been filed for the following interim measures and for appointment of receiver:

(2.) "Key facts" necessary for the adjudication of this application are that the petitioners and respondent had entered into a partnership deed on 26.3.2003. Admittedly, the business was carried on in the partnership till 26.5.2008. A legal notice was issued on 26.5.2008 whereby arbitration clause was invoked. The petitioners approached this Court for appointment of Arbitrator by way of Arbitration Case No. 32 of 2009. This Court on 26.11.2009 passed the following order: "After hearing learned counsel for the parties, this court, is of the opinion that Hon'ble Mr. Justice D.P. Sood (Retd) may be appointed as an independent Arbitrator. It would be treated that both the parties have agreed for appointment of the sole arbitrator, i.e. Hon'ble Mr. Justice, D.P. Sood (Retd.). The Hon'ble Mr. Justice D.P. Sood (Retd), the sole Arbitrator, shall be assisted by Ms. Monika Shukla and Ms. Aruna Chauhan, Advocates. The sole Arbitrator, shall be paid a fee of Rs.2,50,000/-, out of Rs.40,000/- shall be paid by cheque to Ms. Monika Shukla and Ms. Aruna Chauhan (Rs. 20,000/- each) to the above learned assisting Advocates. The fees of the Arbitrator shall be borne equally by both the parties. It is expected that venue of the arbitration may be kept keeping in view the suitability of both the parties, preferably at Shimla"

(3.) Justice D.P. Sood (Retired) was appointed as sole Arbitrator. The parties appeared before the learned Arbitrator on 22.12.2009. The petitioners were directed to file their claim alongwith supporting documents on or before 30.12.2009. The application for appointment of receiver was preferred by the petitioners and the learned Arbitrator passed the orders on 4.1.2011, vide Annexure A-2. The operative portion of the order dated 4.1.2011 reads as under: