SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2018 Supreme(Bom) 1135

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. DHARMADHIKARI, B.P. COLABAWALLA, JJ.
Mehrunnissa Sheikh Abdul Rahim - Appellant
Versus
Rashidabai Allarakha Adult, Indian inhabitant and Ors. - Respondents
Appeal No. 32 of 2017 in Arbitration Petition No. 456 of 2015 with Notice of Motion No. 332 of 2017 with Appeal No. 442 of 2016 in Arbitration Petition No. 646 of 2015 with Notice of Motion No. 99 of 2018 and Notice of Motion No. 100 of 2018
Decided On : 31-08-2018

Advocates Appeared:
Mr. Nishant Sasidharan with Mr. Sheelang Shah and Ms. Gauri Mestha i/b. M/s. L J Law for the appellants in APP/32/2017 and for respondent no. 1 in APP/442/2016.
Mr. Chirag Balsara with Mr. Huda H. Diamondwala i/b. M/s. Diamondwala and Co. for the appellants in APP/442/2016 and for respondent nos. 1 to 11 in APP/32/2017.
Mr. Javed Hussein with Mr. Mubashir Hussein, Ms. Munibah Iram, Ms. Saba Shaikh, Ms. Reshma Khatri, Ms. Firdus Khan, Mr. Munzir Hussein i/b. M/s. Hussein and Co. for respondent nos. 12 and 13 in APP/442/2016 and for respondent nos. 2 and 3 in APP/32/2017.

The main legal point established in the judgment is the application of the Indian Evidence Act, 1872 and principles of natural justice in arbitration proceedings, particularly in relation to the admissibility of documents and the reliability of oral and documentary evidence.

Headnote:

Arbitration - Partnership Dispute - Indian Evidence Act, 1872, Arbitration and Conciliation Act, 1996 - 1, 34 - The judgment discusses the admissibility of documents, application of Indian Evidence Act, 1872, and principles of natural justice in arbitration proceedings. The court analyzes the dispute between partners, the admissibility of photocopies of agreements, and the reliability of oral and documentary evidence. The court concludes that the Award satisfactorily resolves the limited dispute and dismisses the appeal.

Fact of the Case:

The case involves a partnership dispute over the ownership of a property used for a hotel business. The appellant challenges the order dismissing the arbitration petition, primarily on the grounds of admissibility of documents and the application of the Indian Evidence Act, 1872.

Finding of the Court:

The court finds that the dispute between the partners was narrowed down to the ownership of the property and the admissibility of certain documents. The court concludes that the Award satisfactorily resolves the limited dispute and dismisses the appeal.

Issues: The main issues revolve around the admissibility of documents, ownership of the property, and the application of the Indian Evidence Act, 1872 in arbitration proceedings.

Ratio Decidendi: The court's decision is based on the analysis of the admissibility of documents, reliability of oral and documentary evidence, and the application of legal principles in arbitration proceedings.

Final Decision: The court dismisses the appeal and upholds the order dismissing the arbitration petition, finding that the Award satisfactorily resolves the limited dispute.

JUDGMENT :

S.C. Dharmadhikari, J.

1. In view of the earlier orders, the Appeals are admitted. Filing of paper-books is dispensed with. Notice of Appeals is waived. By consent, heard forthwith.

2. By this appeal (Appeal No. 32 of 2017), the appellant challenges the order of the learned Single Judge dismissing Arbitration Petition No. 456 of 2015.

3. By the impugned order dated 30th July, 2015, two arbitration petitions, one bearing no. 646 of 2015 and the appellant's arbitration petition have been decided together. Insofar as the appellant's Arbitration Petition No. 456 of 2015 is concerned, the challenge is that in the year 1961, Mr. Abdul Rahim Shaikh, the husband of the appellant before us carried on business of a canteen as a sole proprietor. That was carried on since her husband was in exclusive use, occupation and possession of the property, namely, City Survey No. 290, including the basement. He expired on 29th May, 1979 leaving behind the appellant-petitioner and five sons. The entire property is stated to be the subject matter of a partnership, but owned by the deceased Abdul Rahim Shaikh. The estate on his death was inherited by the appellant-petitioner and the five sons. They being the only heirs and legal representatives, it is stated that the petitioner is an illiterate lady. On 27th June, 1977, a partnership firm was constituted and duly registered to operate and conduct a business of hotel under the name and style as “Hotel Sagar”. Till 5th February, 2009, the respondents to this appeal and the present appellant-petitioner carried on this business in partnership. Eight partnership agreements entered into are all referred to in para 3 of the arbitration petition and further, two retirement deeds as well. In the memo of the arbitration petition itself, it is stated that these documents are admitted and therefore, marked as exhibits by the sole Arbitrator. The business was conducted in partnership, but none of the partnership deeds mention about the properties of the firm. There are also retirement deeds, but these retirement deeds also make no reference to the rights in the property. After referring to all the partnership deeds, it is stated that under a deed of partnership marked as Exhibit “C-24” before the sole Arbitrator dated 12th July, 2002, the parties recorded terms and conditions of the partnership and stated that the business would be that of running and conducting a guest house, lodging house and hotel and it is such a business that the partnership carried on from time to time.

4. It is stated that there was a dispute and which resulted in the petitioner-appellant being put to notice by the respondents of dissolution of the firm. Since there was a dispute with regard to the shares, the matter was referred to the sole Arbitrator. The sole Arbitrator made his Award and undisputedly, that Award records all the above facts. It also records the stand of the appellant. By the Award, which was pronounced by the sole Arbitrator on 30th September, 2014, he declared as under:-

“Award

10.32 In the light of the aforesaid findings and also the understanding recorded on 3rd April, 2014, the following Award is passed.

(i) Any liability of the firm that may arise for the period prior to 5th February, 2009 shall be borne exclusively by the Claimants and the Claimants shall indemnify the other partners of any liability that may arise from the said period;

(ii) For any liability relating to the period after 5th February, 2009, Respondent No. 1 shall be exclusively liable and the other partner shall not be liable in any manner whatsoever. Respondent No. 1 shall indemnify the other partners for any liability that may be borne by them for the period after 5th February, 2009;

(iii) The firm has acquired rights and interests in the ground floor, first floor, second floor and third floor terrace of the building known as “Hotel Sagar” situated at Baitul Aman, corner of Bellasis Road and Maulana Azad Road, Mumbai 400 008 and the same are th




























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top