1. The appellant is aggrieved by rejection of its petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter “the Act”), by the impugned judgment of a learned Single Judge.

2. The appellant contends that in October, 2005 it had entered into an oral agreement of partnership with respondent Nos.1 and 3 (hereinafter “Omway”) for developing and marketing a township on land measuring about 100 acres in Village Belaka, Alwar (Rajasthan). It is alleged that the land for partnership project was to be purchased in the name of Omway and that all the three partners were to share the profits/losses in equal ratio. At that time the subject land was under acquisition but the Government had not taken its possession. Despite the acquisition, the land for the project measuring 32.202 acres was purchased in the name of Omway; land measuring 3.064 acres in the name of the appellant; and land measuring 33.903 acres in the name of the fifth respondent, a Dalit allegedly working with the first two respondents as peon, though, however a Power of Attorney dated 21.6.2006 was taken from him in favour of the second respondent. It is further alleged that apart from the above, an agreement to purchase land measuring 11.555 acres was also executed in the name of Omway, the fifth respondent and the appellant.

3. The appellant urges that all the land for the project was purchased in the name of the above three partners and initially the partnership operated from 103, Hemkunt Towers, 98, Nehru Place, New Delhi but was later shifted to 3, LSC, Sharda Chamber, K-Block, Kalkaji, New Delhi. A Havan ceremony was performed on 30.4.2006 in which the director of the appellant also took part as a partner.

4. The appellant also alleged that between November, 2005 and July, 2007 it had contributed a sum of Rs.2.05 crores (Rs.85 lakh through cheques and Rs.120 Lakh in cash). The cheques were issued in the name of Omway. In April/May, 2006 the project was pre-launched and an amount of Rs.5.38 crores was collected from public towards booking of plots. It is alleged that after such pre-launch, an amount of Rs.25 lakh was paid by Omway to the appellant on 06.05.2006 for purchase of a piece of plot measuring 3.064 acres and that again on 02.09.2006 further sum of Rs.25 lakh was paid to it. It is also alleged that in its own balance sheet for the year ending on 31.3.2006 the appellant had treated the amount paid to Omway through cheques as an investment, though in the schedule appended to its balance sheet, this amount is shown as „advance against plots’. On the other hand Omway in its balance sheet for the year ending on 31.03.2006 has shown this amount as an “advance from business associates” and whereas in its balance sheet for the year ending on 31.3.2007 „as an advance from customers/others”.

5. The appellant contends that the entire land for the project was purchased from the funds contributed by it or from the money realised from initial booking of the plots and that none of the other partners viz, Omway or third respondent had contributed any money. Furthermore during continuation of such oral partnership, all of them viz, the appellant, Omway and third respondent had executed a Memorandum of Understanding (hereinafter referred to as “MOU”) on dated 2.8.2006 which was nothing but a partnership deed wherein all the partners had to contribute Rs.15 lakh each and were to share the losses/profits in the same ratio. The MOU, in Clauses 13 and 14 rather defined them as partners. An escrow account, as envisaged in clause 10 of the MOU was also opened on 2.9.2006 with Punjab National Bank, Nehru Place, New Delhi. It is also alleged that vide a notice dated 15.11.2006 Omway withdrew from oral understanding on the plea that the appellant had failed to contribute Rs.15 lakhs as agreed to in the MOU whereas more than Rs.1 crore of appellant’s money was lying with Omway on the said date. The appellant, by its reply dated 2.1.2007 accepted dis