( 1 ) THIS is a petition under Section 9 of the Arbitration and Conciliation Act, 1996which seeks the appointment of a receiver for the firm M/s. Sultan Chand and Sons andm/s. Premier Book Co. , which were formed pursuant to a Partnership Deed dated2. 4. 1976 between Shri Prakash Chand and his brother and sisters who arerespondents 1, 2 and 3. The petitioners deceased father Prakash Chand had 40 percent share and each of the respondents had 20 per cent share, and the partnershipdeed contained an arbitration clause.

( 2 ) ON 10. 9. 1997 Shri Prakash Chand, died leaving his will dated 25. 1. 1997bequeathing his share in the partnership to his two sons who are the presentpetitioners. The defendants 4-8 are daughters of the deceased Prakash Chand. Thedefendant No. 1 is the brother and respondent Nos. 2-3 are the sisters of Prakashchand and each had 20% share in the firm. The petitioner s case is that on the deathof Shri Prakash Chand, the partnership stood dissolved by operation of law undersection 42 sub-clause (e) of the Indian Partnership Act, there being no clause for thecontinuation of the partnership subsequent to the death of one of the partners. Pursuant to the death of the Shri Prakash Chand efforts were made to form a newpartnership including the two petitioners, as the new partners of the firm. However,these efforts did not fructify and consequently on 13. 2. 1998 the petitioners gavenotice to respondents 1 -3 to execute a partnership with the petitioners within 7 days. No reply was received to this Notice. On 27. 2. 1998 the petitioners asked therespondents 1-3 to agree to make a reference of the disputes to arbitration. However,no reply was received by the petitioner. On 9. 3. 1998 notice was given by thepetitioners to the respondents 1 -3 saying that the respondents 1-2 are misusing theproperties of the firm by setting up a new firm by the name of Sultan Chand and Sons/premier Book Co. and the daily proceeds were being taken away by respondents. This notice also proposed the name of Shri R. N. Sawhney, the Income-tax Adviser ofthe erstwhile firm as an Arbitrator. On 17. 3. 1998, the present petition under Section 9of the Arbitration and Conciliation Act, 1996 was filed by the petitioner for appointmentof a Receiver and for grant of an injunction restraining the respondents 1 and 2 fromcarrying on the business in the name of Sultan Chand and Sons or Premier Book Co. orusing any properties of the dissolved firm or receiving cash sale of books.

( 3 ) ON 26. 3. 1998, the following order was passed by this Court:

"respondents No. 1 and 2 are restrained from using the properties, assets andfunds of M/s. Sultan Chand and Sons and M/s. Premier Book Co. for theirbenefits. "during the hearing of this case certain orders were passed by this Court whileconsidering the possible terms of settlement between the parties. The followingorder was passed on 13. 10. 1999 by this Court on an offer made by the respondentno. 1:-

"on an offer of deposit of Rs. six crores in the form Fixed Deposit Receiptsand Bank balances in this Court made on behalf of the learned counsel forrespondent No. 1, Mr. Sahai learned senior counsel appearing on behalf ofthe petitioner states that he is agreeable provided: (a) 40% of the proportionate profit of the last two years is paid to hisclient; and (b) interest on the sum of Rs. six crores is also paid to his clientsubject to final adjustment. The proposal of the learned counsel for the respondent No. 1 also statesthat his offer also requires upon the deposit of Rs. six crores as describedabove, the petitioner will not interfere with the running of the firm by therespondent No. 1. "subsequently another order was passed on 2. 12. 1999 in the following terms;-

"apart from the suggestions contained in the order of this Court dated 1 3/10/1999 it was suggested to the parties that the last two years profit be-divided into 40 per cent to the petitioner and 60 per cent to the respondentsand the 6 crores