2016 Supreme(Del) 2938
IN THE HIGH COURT OF DELHI AT NEW DELHI
V. KAMESWAR RAO, J.
Columbia Holdings Private Limited - Petitioner
Versus
SSP Developers Pvt. Ltd. - Respondent
ARB.P. 212 & 213 of 2016, IAs 6012-6013, 6014-6015 of 2016, O.M.P.(I) (COMM.) 94 & 96 of 2016, IAs 5957-5958 & 5959-5960 of 2016
Decided On : 11-08-2016
Advocate Appeared:
For the Petitioner: Mr. Harish Malhotra, Mr. Anil Sharma, Mr. N.S. Bajwa, Mr. Pramod Saigal, Mr. Shikhar Sareen, Mr. Jaskaran
For the Respondent: Mr. Ravi Gupta, Mrs. Shally Bhasin, Mr. Raghav Pandey, Ms. Bhoomija Verma, Mr. Yudhishthir Singh, Mr. Lakshmeesh Kamath
Headnote:
Arbitration and Conciliation Act, 1996 - Section 9, 11 (5), 11 (6) - Disbursal of profits - Dissolution of firm - Maintainability of petition - Amount lying in the capital account - Petitioner through its advocate got issued legal notice - Breach of partnership deed having been committed by the respondent - Allegations that the respondent has misappropriated the funds of the partnership business - Petitioner is a partner of 50% in the firm and it is being deprived of its share in the profit and loss - Mistrust between the parties - Petitioner has indicated not to continue with the partnership business - Petitioner's applications under Section 11 of the Act of 1996 - Held, petitions are maintainable.
V. Kameswar Rao, J.
1. By this order, I shall decide a preliminary objection taken by the respondents on the maintainability of the four petitions which have been filed by the petitioner under Section 11 (5) and 11 (6) of the Arbitration and Conciliation Act, 1996 (‘Act of 1996’ in short) being Arbitration Petitions No. 212/2016 and 213/2016 and Petition under Section 9 of the Act of 1996 being OMP (I) (COMM) Nos. 94/2016 and 96/2016 on the ground that the petitions are hit by Section 69 (3) of the Partnership Act, 1932 (‘Partnership Act’ in short).
2. The Arbitration Petition 212/2016 and OMP (I) (COMM) 96/2016, the relevant facts are, a fresh partnership deed dated April 1, 2005 was signed between MGF Development Ltd. and Columbia Holdings Pvt. Ltd in the partnership firm of MGF Mall Management to share the profits and losses as under:-
M/s MGF Development Ltd- 50%
M/s Columbia Holdings Pvt. Ltd.- 50%
Thereafter, on 6th June, 2012 M/s SSP Developers Pvt. Ltd. respondent No.1 through its Director Mr. Siddharth Gupta was introduced in the partnership firm and the profits and losses under new partnership were agreed to be shared as under with effect from October 1, 2009.
M/s MGF Development Ltd- 25%
M/s Columbia Holdings Pvt. Ltd.- 50%
M/s SSP Developers Pvt. Ltd.- 25%
Similar is the position in Arbitration Petition No.213/2016 and OMP (I) (COMM) No. 94/2016. In the said cases, the partnership firm is MGF Event Management.
3. It is the case of the petitioner that, the petitioner sought disbursal of profits and the amount lying in the capital account vide legal notice dated 31st March, 2015 to the respondents. It is stated by the petitioner, a reply dated 14th April, 2015 was sent by the respondents through their lawyer. A counter-reply dated 28th April, 2015 was sent by the petitioner to the aforesaid reply of the respondents. A further counter-reply was given by the respondents dated 14th May, 2015 which also resulted in a further reply on behalf of the petitioner dated 2nd June, 2015. It is the case of the petitioner that the petitioner through its advocate got issued legal notice dated 26th October, 2015 called upon the respondents to make a reference to the disputes arising out of and in relation to the business of the partnership firm M/s MGF Event Management through anyone of the suggested persons named in the said notice. Identical are the facts in Arbitration Petition No.212/2016 and OMP (I) (COMM) No.96/2016. The firm being MGF Mall Management.
Submissions:-
4. Mr. Ravi Gupta, learned Sr. Counsel for the respondents would submit the following facts needs to be considered for appreciating the aforesaid issue:
31st March, 2015 – Notice given by the petitioner seeking rendition of accounts and return of his capital.
14th April, 2015 – Reply given by the petitioner inter alia denying the contention of the petitioner in the aforesaid notice.
28th April, 2015 – A rejoinder notice given by the petitioner inter alia reiterating its earlier stand.
14th May, 2015 – The facts again denied by the respondents.
2nd June, 2015 – Another notice issued by the petitioner.
26th October, 2015 – Again a notice issued by the petitioner inter alia seeking appointment of an Arbitrator.
5. It is his submission that the aforesaid correspondence/notices exchanged show that the petitioner has throughout been asking for rendition of accounts, its share of profits and return of its capital. The firm has never been dissolved nor any intention to dissolve the firm has ever been made. The petitioner cannot now claim that they were praying for the dissolution of the partnership firm. Such a contention is misconceived and merely an afterthought. Reference is made to Iqbalnath Premnath Anand Vs. Rameshwarnath Premnath Anand & Anr.(AIR 1976 Bom 405) wherein the Supreme Court held :
“The partnership being at will ..... “was sufficient to disclose to the court the intention of the parties that the partnership constituted by the deed of 4th December, 1967 was a partne