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2000 Supreme(Del) 785

High Court Of Delhi
SARITA LAMBA - Appellant
Versus
SATISH JASSAL - Respondent
ORIGINAL MISCELLANEOUS PETITION 112 of 2000
Decided On : 09/11/2000

Advocates Appeared:
DIPAK DHINGRA, F.K.Chadhal

The central legal point established in the judgment is the determination of partnership entitlement and the impact of a dormant partnership on the entitlement to injunctive relief.

Headnote:

Arbitration and Conciliation Act - Partnership Dispute - Section 9 - 1996 - [ARBITRATION] - [PARTNERSHIP DISPUTE] - [Section 9] - This case involved a partnership dispute under the Arbitration and Conciliation Act, 1996. The court discussed the partnership deed, registration, and financial contributions to determine the dormant nature of the partnership and the entitlement to the injunction prayed for.

Fact of the Case:

The petitioner sought an order restraining the respondents from dealing with the premises purchased for a partnership, alleging unauthorized alienation of partnership assets. The respondents contended that the property was their individual property and the partnership was dormant from its inception.

Finding of the Court:

The court found that the partnership deed was registered after a significant delay, and the petitioner failed to clarify the purpose of a substantial payment made in 1996. The court concluded that the partnership was dormant, and the petitioner was not entitled to the injunction prayed for.

Issues: Partnership entitlement, unauthorized alienation, dormant partnership

Ratio Decidendi: The delay in partnership deed registration, lack of clarification on financial contributions, and absence of evidence supporting partnership entitlement led to the finding of a dormant partnership and denial of the injunction.

Final Decision: The petition was dismissed, and the interim order was contingent upon arbitration proceedings commencing within twelve weeks.

MUKUL MUDGAL

( 1 ) THIS is a petition, filed by the petitioner under Section 9 of the Arbitration and Conciliation Act, 1996. This petition seeks an order restraining the respondents or their agents from alienating, transferring or parting with possession of the premises in question said to be constructed upon plots bearing Nos. 700-A and 701-A, Village Lado Sarai, New Delhi. It further seeks an appointment of a Receiver for the said property and seeks the deposit of the rent paid to the respondents for the said premises in this Court.

( 2 ) THE petitioner submits as under: Respondent No. 1, Satish Jassal and respondent No. 2, Nagender Singh were acquainted with the petitioner through her husband as being builders and consequently a partnership firm constituting the petitioner and the two respondents was formed. The partnership inter- alia provided that properties shall be purchased from the funds provided by the parties towards their capital and the properties purchased shall be developed and redeveloped and dealt with thereafter so as to accrue profits for the partnership firm and its partners. Accordingly property Nos. 700-A and 701-A measuring 242 sq. yds. was purchased in Village Lado; Sarai, New Delhi and the petitioner paid the entire consideration of Rs. 5. 00 lacs to the seller Smt. Saroj Dev for property No. 701 -A. This property was purchased for the partnership firm which was to be named national Construction Company . However, the partnership at that time was yet to be formed and consequently the properties were to be purchased in individual names and thereafter were to be part of the assets of the firm. On 27th March, 1996, the petitioner executed the written Deed of Partnership under the name and style of National Construction Company for sale, purchase, renting construction and development of residential, commercial and agricultural properties. The petitioner has relied upon Clause 5 of the said Partnership Deed to contend that petitioner had given financial assistance in the purchase of the property and was also to contribute towards the redevelopment. The partnership firm was subsequently registered on 18th November, 1998.

( 3 ) THE petitioner s case further is that the amount of Rs. 5. 00 lacs was paid to Saroj Devi from her initial investment. This was also reflected in the income-tax returns of the petitioner. The petitioner s case is that even though the properties in question were purchased prior to the Deed of Partnership dated 27th March, 1996, the properties No. 700-A and 701-A were purchased for the partnership by the petitioner and the respondents. Clause 13 of the Deed of Partnership has been relied upon by the petitioner to contend that no party shall without the written consent of the other, assign and mortgage his share and interest in the partnership or dispose of by loan, pledge, sale or otherwise any part of the partnership properties or assets. According to the petitioner the respondents developed the property and constructed basement, ground floor, first floor, second floor and the third floor in the said premises. A bank account was -opened in the name of National Construction Company recording the petitioner and the respondent as partners of the firm. In April, 2000, the petitioner came to know upon a site visit that the building on the piece of land, i. e. . property No. 700-A and 701-A was fully complete and under occupation of the parties including "voltas Ltd. " and "carrier Refrigeration Ltd". The petitioner claims that the respondents never disclosed to the said companies that the properties were owned by the firm and the security deposit for large sums of money was taken by the respondents from the said companies. The petitioner states that when the respondents were confronted with this unauthorised alienation of the partnership assets, the respondent No. 2 threatened the husband of the petitioner with life due to his muscle power in case any controversy was created. Accordingly a







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