1993 Supreme(Del) 209
High Court Of Delhi
AMIR SINGH JAIN - Appellant
Versus
BIMLA DEVI JAIN - Respondent
Interim Application 7708 of 1989
Decided On : 03/26/1993
Amitabh Narayan, G.C.MITTAL, KANVAL NARAIN
Headnote:ARBITRATION ACT - Section 30 — Claim before arbitrator include allegation of fraud-No application lie before arbitrator to return the reference-proper course is to approach the Court for revocation of authority of arbitrator.
( 1 ) AMIR Singh Jain filed a suit against Smt. Bimla Devi jain, his daughter-in-law and Surinder Kumarjain his grand son, for dissolution of partnership and rendition of accounts. It was stated in the plaint that on 29th May, 1969, Amir Singh Jain and Bimla Devi Jain entered into an agreement of partnership whereby Amir Singh Jain took Bimla Devi Jain as his partner in the business being carried on under the name and style of "m/s. Mahavir Atta Bhandar" on the terms and conditions mentioned therein. It was further averred that the partnership deed was executed by him on the repeated requests of his son Attar Sain jain, the husband of Bimla Devi Jain. The case of the plaintiff was that this was done by Attar Sain Jain in order to fraudulently and wrongfully usurp and misappropriate for himself and the defendants large amounts of money out of the said business. By another agreement dated 1. 4. 1972 Surender Kumar Jain was also admitted as a partner in the running business. The defendant No. 2 misconducted himself in the affairs and management of the business. On many occasions he took out various amounts out of the partnership funds. On or about 30. 10. 1974, the plaintiff met with a serious accident as a result whereof he sustained grave injuries and remained admitted in the Willingdon Hospital, and thereafter confined to bed for several months. After he recovered from illness, he visited the house and the shop in the month of April ,1975 and found that the tenanted premises had been broken open and were occupied by the defendants. All his apparels, articles and substantial portion of goods and stock in trade were found missing. The defendants put up their own lock on the shop. The defendants illegally and fraudulently excluded the plaintiff from the partnership business and its affairs. The defendants had grossly misconducted themselves in the affairs of management of the partnership business and fraudulently and illegally excluded the plaintiff therefrom. The plaintiff by letter dated 27th September, 1976 dissolved the partnership, which was at will, as from 27th September, 1976 and called upon the defendants to render true and complete accounts of the partnership business. In these premises, prayer was made to pass an order and declare that the partnership business stood dissolved as from 27th September, 1976 and a direction was sought against the defendants to render accounts.
( 2 ) BEFORE any written statement could be filed, the parties agreed that Mr, M. L. Jain, Advocate may be appointed as a sole Arbitrator to decide the dispute between the parties. By order dated 16th September, 1981, this court appointed Shri M. L. Jain, Advocate as the sole Arbitrator to decide the dispute forming subject matter of the suit.
( 3 ) THE arbitrator entered upon reference and made his award on 17th March, 1989. The learned Arbitrator filed the award in Court. It may be stated that during the pendency of the arbitration proceedings Amir Singh Jain and Bimla Devi Jain both died. Their legal representatives were brought on record. The defendants accepted the award. But on the other hand the legal representatives of Amir Singh jain challenged the award by filing objections under Section 30 of the Arbitration Act. The objections were contested on behalf of the defendant No. 2, Surinder Kumar Jain.
( 4 ) ON the pleadings of thearties the following issues were framed:-
(1) Whether the objections filed under Section 30 of the Arbitration Act are within time? (2) Whether the impugned award is liable to be set aside on the grounds as mentioned in the Objection Petition? (3) Relief. The parties were given opportunity to lead evidence by way of affidavits.
( 5 ) I have heard the learned counsel for the parties and have bestowed my thoughtful consideration to the issues involved. My findings on the above issues are as under:- ISSUE NO. 1:-
( 6 ) FROM the order dated 11. 1. 1990 it appears that the notice of filing of the award issu