RAMESH RANGANATHAN, J.

1. The respondent herein is engaged in the business of assembling and manufacturing of power supply systems. The applicants herein entered into a partnership agreement with the respondent on 16.06.2006, with a view to carry on business of designing, developing, assembling, manufacturing and selling of uninterrupted power supply systems, inverters, power regulation devices etc. Pursuant to the partnership deed dated 16.06.2006, a Memorandum of Understanding was entered into on 02.12.2007 whereby the respondent took up the responsibility of undertaking research and development activities and design work of tools and dyes etc. The development activities and design works were to be completed by April, 2008. Certain disputes arose between the parties, resulting in the applicants issuing a legal notice on 18.09.2008 calling upon the respondent to return the unused cheques drawn on Development Credit Bank Limited, Abids, Hyderabad. The respondent issued a reply notice on 27.09.2008. As disputes arose between the parties, the applicants sent a notice, to the respondent on 13.10.2008, to refer the disputes to arbitration. On the ground that there was no response