IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JULY, 2019 BEFORE THE HON’BLE MR. JUSTICE B. VEERAPPA C.M.P. No.109/2019 BETWEEN:
MR. SAJU THOMAS, S/O P.M.THOMAS, AGED ABOUT 52 YEARS, PARTNER, M/S. APR SALES CORPORATION, PARTNERSHIP FIRM, NO.12, J.R. ARCADE, 80 FEET ROAD, 1ST BLOCK, KORAMANGALA, BENGALURU-560 034.
... PETITIONER (BY SMT. REVATHY ADINATH NARDE, ADVOCATE) AND:
MR. PRABHAKARAN KIZHAKKEVEETIL, S/O UNNIKRISHNAN, AGED ABOUT 49 YEARS, PARTNER, M/S. APR SALES CORPORATION, PARTNERSHIP FIRM, NO.12, J.R.ARCADE, 80 FEET ROAD, 1ST BLOCK, KORAMANGALA, BENGALURU-560 034.
NOW PRESENTLY SHIFTED TO NO.225, GROUND FLOOR, 13TH CROSS, IV SECTOR, HSR LAYOUT, BENGALURU-560102.
... RESPONDENT (BY SRI JANARDHANA G., ADVOCATE) ***** THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO ALLOW THE ABOVE PETITION AND APPOINT A SOLE ARBITRATOR TO ADJUDICATE UPON THE DISPUTE BETWEEN THE PARTIES HEREIN UNDER THE PARTNERSHIP DEED DATED:01/04/2014 AS PER ANNEXURE-A IN TERMS OF ARBITRATION CLAUSE 17.
THIS CMP COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R The petitioner filed the present petition under the provisions of Section 11(5) of the Arbitration & Conciliation Act, 1996 to appoint a sole Arbitrator to adjudicate upon the dispute between the parties, in terms of Clause-17 of the Partnership deed dated 1.4.2014 entered into between the parties.
2. It is the case of the petitioner that he and the respondent are partners in M/s APR Sales Corporation, which is registered with the Registrar of Firms. The registered partnership deed was entered into between the parties on 1.4.2014. The partnership firm basically deals with medical and diagnostic equipments and consumables.
3. It is further contended that M/s APR Sales Corporation was initially registered as Proprietor firm, which was run by the respondent and he was struggling to run the day to day business of the firm and was looking for a partner who could bear the responsibilities of the firm and who was well versed with handling the marketing as well as sales of the Medial and Diagnostic equipments. Ultimately, the respondent found the petitioner suitable to handle the same and convinced the petitioner to join his firm and support him in building the firm. Accordingly, the petitioner joined the respondent in the year 2008. Subsequently the respondent decided to retain the petitioner and entered into a partnership deed on 1.4.2014. Thereafter the respondent started to hide the financial details from the petitioner and did not share the Books of Accounts and other papers and documents of the Partnership Firm, which amounts to violation of the clauses in the Partnership Deed.
4. It is further case of the petitioner that the respondent has blocked the access of the petitioner to the accounting software of the Partnership Firm by putting up a password and denied the petitioner access to any financial details of the firm. It is further stated that in fact the petitioner has proposed to the respondent to retire as he is not capable to run the firm, but the respondent is adamant in mis-managing the firm whereby, the petitioner fears that, if the partnership firm is not protected by this Court, it may put the petitioner to heavy loss as he is entitled to 50% share in the assets of the partnership firm. Therefore issued legal notice to the respondent on 13.2.2017 and the respondent replied on 20.2.2017. Therefore the present Civil Miscellaneous Petition is filed for appointment of the sole Arbitrator.
5. The respondents have not filed objections.
6. I have heard the learned counsel for the parties.
7. Sri Revathy Adinath Narde, learned counsel for the petitioner reiterating the averments made in the writ petition has contended that there is no dispute with regard to the Partnership Deed entered into between the parties and existence of the arbitration Clause 17 and compliance of the provisions of Section 7(5) of the Arbitration and Conciliation Act. Therefore he sought to allow the present Civil Miscellaneous Petition.
8. Per contra, Sri Janardhana .G, learned counsel for the respondent has denied the averments made in the petition and contended that it is the mistake on the part of the petitioner and not the respondent. He has disputed all the contentions raised and sought for dismissal of the Civil Miscellaneous Petition.
9. Having heard the learned counsel for the parties, it is an undisputed fact that both the petitioner and the respondent entered into the registered partnership deed dated 1.4.2014 to deal with Medical and Diagnostic equipments and consumables. The petitioner made certain allegations and the same is disputed by the respondent. It is also not in dispute that Clasue-17 of the registered partnership deed is the arbitration clause and it reads as under:
“17. If during the continuance of partnership or at any time afterwards any disputes, differences, or question shall arise between the partners or any of them or any of the representatives, touching the partnership or the accounts or transactions thereof or dissolution or winding up thereof or the construction, meaning or effects of this deed or anything contained therein or the rights and liabilities of the partners or the representatives under this deed or otherwise in relation to the partners, then every such disputes, differences, or question shall be referred to a sole Arbitrator pursuant to the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof for the time being in force.”
10. It is also not in dispute that the petitioner has complied the provisions of Section 7(5) of the Act. In view of the admitted facts, there is no impediment for this Court to appoint the sole Arbitrator to adjudicate the dispute between the parties.
11. For the reasons stated above, the Civil Miscellaneous Petition is allowed. Hon’ble Sri Justice R. Gururajan, Former Judge of this Court is appointed as the sole Arbitrator to adjudicate the dispute between the parties in terms of Clause-17 of the Partnership Deed dated 1.4.2014 entered into between the parties.
The Registry is directed to send copy of this order to Hon’ble Sri Justice R. Gururajan, Former Judge of this Court & Arbitration Centre forthwith.
Sd/-
JUDGE Gss/-