MANISH VYAS SON OF LATE SHRI GOVERDHAN DAS Vs. DR. SOHAN LAL SIHAG, R/O SIHAG HOSPITAL, 2A17, GAGAN PATH, JAWAHAR NAGAR, SRIGANGANAGAR (RAJ.) PRESENTLY RESIDING AT 603, D

JUDGEMENT

(1.) The dispute in the present Arbitration Application and Civil Miscellaneous Appeal is between the same parties and therefore both were clubbed by order of Hon'ble the Chief Justice and are being decided together.

(2.) Arbitration Application has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short, 'the Arbitration Act') by two applicants, namely, Manish Vyas and Dr. Rajesh Kumar Singh (hereinafter shall be referred to as 'claimants'), inter-alia with prayer that upon setting aside the award dated 08.01.2007 passed by the learned Arbitrator, a new and independent Arbitrator may be appointed for resolving the dispute between the parties. Civil Miscellaneous Appeal has been filed by non applicants (hereinafter shall be referred to as non-claimants), namely, Dr. Sohan Lal Sihag, Manjeet Singh and Dr. Ram Sagar Nagar, challenging the judgment dated 31.03.2010 passed by the Additional District Judge No.3, Jaipur City, Jaipur, in Civil Miscellaneous (Arbitration) Case No.30/2009, who, while allowing the objections filed by non-applicant-claimants Manish Vyas and Dr. Rajesh Kumar Singh, set aside the award dated 08.01.2007.

(3.) Essential facts giving rise to these matters are that a charitable trust by the name of Nirvana Charitable Trust, Sriganganagar (Rajasthan) was registered under the Rajasthan Public Trust Act, 1959. The trust purchased a land measuring 0.16 hectare at Bagru, District Jaipur on 16.01.2002. The Trust applied to the Government of India as well as the Dental Council of India on 24.09.2002 for establishment of a new dental college, namely, Rajasthan Dental College and Hospital at Bagru Khurd, Jaipur. The Government of India, vide letter dated 30.09.2003, permitted the Trust to establish the college for the academic session 2003-04. The University of Rajasthan, vide communication dated 30.09.2003, conveyed to the JNV University that Trust has been granted fresh affiliation for B.D.S. Course with annual intake of 100 seats. The trust on 23.10.2003 took financial help from the Banks. The UTI Bank sanctioned corporate loan of Rs.650 lacs to the Trust. The Jaipur Development Authority alloted 21,420.23 square meter of land on 26.12.2002 for the college and executed a lease deed in favour of the Trust. A Memorandum of Understanding was executed on 11.02.2003 between the Trust through its trustees Mr. Manjit Singh and three other persons including both the claimants Manish Vyas and Dr. Rajesh Kumar Singh. This MOU was given effect to from 26.09.2001. The MOU was executed to run administration and carry out management activities of the Dental College. Four persons were appointed as Directors for management, administration and running of the college. Out of those four persons, two are the claimants and third one was Dr. Sohan Lal and fourth one was Dr. Ram Sagar. While claimant Manish Vyas was given share of 40%, claimant Dr. Rajesh Kumar Singh and non-claimants Dr. Sohan Lal and Dr. Manjeet Singh were given share of 20% each.