PARVEEN KUMAR MALHOTRA Vs. TH RANJIT SINGH

JUDGEMENT

(1.) THIS court on November 11, 1976 referred the dispute between the parties to the arbitration of Sh. T.R. Parihar, the then Dy. Registrar of this court who made the award. Notice of the said award was given to the parties. Ranjit Singh respondent objected to the award and filed his objections mentioning therein that petitioner No. 2, Pardeep Kumar had given an affidavit before the arbitrator that there was no dispute between him and the parties and the same was to be adjudicated upon by him and under such circumstances there was no occasion for the arbitrator to make the award. It has further been stated by him that the arbitrator has given the award regarding matters which were never referred to him. Further no account books were produced before the arbitrator and the arbitrator calculated the amount by guess work. Parveen Kumar, petitioner No. 1, has in his objections contended that the parties to the arbitration proceedings have been attending the proceedings before the arbitrator and now no objection could be raised by the respondent in regard to those proceedings. He has further mentioned in his objections that he produced the accounts and relevant documents before the arbitrator but the respondent did not choose to produce any evidence before the arbitrator.

(2.) ON the pleadings of the parties following issues were raised by this Court on 19 -4 -1984: -

(3.) I have heard the learned counsel for the parties and perused the record before me. The issues framed in the case are discussed separately below: ISSUES 1 and 2 : These issues have not been pressed. ISSUES 3 and 4. Main contention of learned counsel appearing for the respondent is that petitioner No. 2 Pardeep Kumar made a statement before the arbitrator that he had no claim against the respondent nor has he moved the petition for any relief and in view of this statement of petitioner No. 2 the arbitrator was not justified in awarding any amount to this petitioner No. 2 alongwith petitioner No. 1. According to him the arbitrator not only acted beyond his jurisdiction but has taken into consideration the accounts of the firm prior to the partnership deed entered into between the parties containing arbitrator clause and under such circumstances the award cannot be maintained under law. Learned counsel for petitioner No. 1 has, however, urged that petitioner No. 1 no doubt made a statement before the arbitration for having no claim against the respondent but the arbitrator took into consideration accounts and awarded the amount to both the petitioners and according to him partnership deed earlier executed between petitioner No. 1 and the respondent continued and formed part of the subsequent partnership deed between the parties in accordance with the provisions of Sec. 17 (a) of Partnership Act.