Shiv Narayan Dhingra, J.

1. By this Petition under Section 34 of the Arbitration and Conciliation Act, 1996, the Petitioners have challenged the award dated 4th April, 2003, passed by Mr. Haji Ayamuddin, Sole Arbitrator, Respondent No.2 herein, on various grounds.

2. Brief facts relevant for deciding this Petition are that an Arbitration Agreement was entered into on 29th August, 2002 between Petitioners and Sardar Harinder Singh/Respondent No.1. As a result of this Agreement, the Arbitrator entered into the reference and called upon parties vide a fax message dated 6th November, 2002 to appear before him and Sardar Attar Singh, Arbitrators in respect of the dispute. The Petitioners told the Arbitrator that he was acting in a biased manner as he was enjoying hospitality of Respondent No.1 during his stay in Delhi. Petitioners also wanted photocopy of arbitration letter i.e. Agreement dated 29th August, 2002 and a statement of claim filed by Respondent No.1. The Arbitrator vide his reply dated 8th November, 2002 told the Petitioners that they were putting hurdles in the arbitration proceedings. He refuted the allegations of his being biased and asked the Petitioners to actively participate in arbitration proceedings so that he could make an award.

3. Even before Mr. Haji Ayamuddin had been assigned the duty to arbitrate between the parties, one Sardar Balwant Singh was also assigned the similar duty and he had given an award which find reference in the award of Mr. Haji Ayamuddin. Mr. Haji Ayamuddin ultimately gave his award, though the Petitioners did not cooperate. In the award, he apportioned the properties of different family members of Petitioners and LRs of deceased persons among the Petitioners and Respondent No.1 in following manner:

It is proved on records that the earnings made by S.Nirmal Singh in the prime of his age and his business career of 17-18 years are very meager and nominal. Even after 1974 till date during which time S.Harinder Singh provided him with enormous capital for the businesses he was managing and controlling, which were more than the investments made in the acquisition of all the immovable assets till 1983-84, yet from such heavy investments provided to him, the net profits made by him are very negligible. But still considering his age factor, being eldest in the family and taking into consideration the minors left behind by Late S.Manmeet Singh, he is looking after; I have allocated following movable/immovable assets for his absolute ownership.

S. Nirmal Singh, S/o Late S. Amar Singh

S. No. Particulars Amount (Rs.)

1. C-150 defense Colony, New Delhi 2,71,80,000.00

2. Zohra Emporium with all its rights and goodwill money of the place, 1 Arya Samaj Road, Karol Bagh, New Delhi (The goodwill value of which is Rs. 2,50,00,000.00 2,50,00,000.00

3. Working Capital in business he is running in Zohra Emporium, Karol Bagh, NewDelhi 30,00,000.00

4. U-51/41, DLF Qutab Enclave, Gurgaon, Haryana 5,00,000.00

5. U-5/13, DLF Qutab Enclave, Gurgaon, Haryana 5,00,000.00

6. The sale money of house at Wazir Akbar Khan lying with S. Kirat Singh, he is obligated to transfer US$ 100,000 @ 47.50=Rs.47.50 lac 7,50,000.00Total 6,09,30,000.00

In the details given above, it has clearly been observed that S.Kirat Singh made huge losses including the capital of US$ 2 million at the end of the year 1984 and also the profits for the years from 1985 to 1992 making a total loss of US$ 4.5 to 5 million. As such, if I consider only as per business norms, he does not deserve any movable or immovable assets from the present assets, which are under his management and control. But still on humanitarian grounds and keep healthy relationship among all the brothers, I consider the following assets be awarded to him.

S. Kirat singh, S/o Late S. Amar Singh

S. No. Particulars Amount (Rs.)