RAMESH DEVNANI Vs. LATA DEVNANI & ORS

JUDGEMENT

(1.) All these six appeals arise out of the common judgment and order dated 26th May, 2007 passed by the District Judge, Jaipur City, Jaipur (hereinafter referred to as 'the Court below') in Arbitration Cases Nos.325/2006, 563/2006 and 569/2006, whereby the Court below has allowed the objections filed by the respondents nos.1, 2 and 3(non-claimants) under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the said Act') and set aside the award dated 22nd June, 2006 passed by the sole Arbitrator. The S.B. Civil Misc. Appeal Nos.2908/2007, 2909/2007 and 2910/2007 have been preferred by the appellant-Shri Ramesh Devnani, whereas the S.B.Civil Misc. Appeal Nos.2931/2007, 2932/2007 and 2933/2007 have been preferred by the appellant-Shri Mukesh Devnani against the impugned order passed by the Court below.

(2.) The short facts, giving rise to the present appeals, are that late Shri Manga Ram Devnani had three sons, named, Ramesh Devnani, Mukesh Devnani and Bhagwan Devnani. The said Bhagwan Devnani had two sons, named, Jayant Devnani and Bhishm Devnani, and the name of his wife was Smt. Lata Devnani. On 13th May, 1992, a partnership firm was created by Shri Bhagwan Das Devnani, Shri Ramesh Devnani, Shri Mukesh Devnani and Shri Jayant Devnani, in the name and style of M/s. Maharaja Carpet & Textile Industries (hereinafter referred to as 'the M.C.T.I.). Subsequently on 16th November, 1992, it was agreed between the said partners that the business of the firm shall be carried on at Maharaja House, Gangapole, Jaipur with the contribution of the capital to be made by the partners. It was further agreed that the duration of the firm shall be 'AT WILL' and the partners may retire from the firm by giving three months notice. All the four partners had agreed to have equal share i.e. 25% each in the profits of the said firm. It was also agreed that in case of dispute, the matter shall be referred to the Arbitrator under the Indian Arbitration Act. It appears that on 15th September, 1993, a further declaration was made by the three partners i.e. Bhagwan Devnani, Ramesh Devnani and Mukesh Devnani to the effect that three separate pieces of lands owned by them, totally admeasuring 3241.22 sq. yards at Maharaja House Gangpole, the details of which were given in the said declaration, shall be allowed to be used freely along with the built up apartments thereon for a period of 21 years i.e. upto 31st May, 2012 for the purpose of promoting the business of the said firm. It was also declared inter-alia that the said firm shall not have the right to sell or dispose of the said lands or any portion there of, however, the firm shall have right to mortgage the said land along with the apartments built thereon, by way of equitable mortgage.

(3.) It further transpires that subsequently the disputes had arisen between the partners, and therefore appellant Ramesh Devnani served notices to the other partners calling upon them to appoint arbitrator for resolving the disputes. The said notices were replied to by the other partners. Since no consensus was arrived at between the partners for the appointment of the arbitrator, the appellant-Ramesh Devnani had made an application being No.246/2005 before the Court below seeking appointment of the arbitrator for resolving the disputes as mentioned therein, under Section 11 of the said Act. The Court below vide the order dated 2nd September, 2005 appointed the sole arbitrator Shri J.P. Bansal for resolving the disputes between the parties. The Court below inter-alia passed the following order:-