SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img



IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Mahesh Chand Khandelwal - Appellant
Versus
Delhi Hardware Stores - Respondent
Arb.P. 293 of 2022
Decided On : 19-04-2022




Parties in a partnership may resolve disputes through arbitration as per their agreement and consent, including provision for fees and necessary disclosures.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Appointment of Arbitrator - Parties jointly consented to refer disputes to the Delhi International Arbitration Centre for resolution under its rules, along with provisions regarding fees and disclosure requirements. (Paras 5, 6, 8)

(B) Arbitration proceedings - Necessity and procedure for referral to arbitration when disputes arise between partners of a partnership. (Paras 3, 4)

Facts of the case:
The petitioners seek appointment of an arbitrator for disputes arising out of a partnership deed dated 17.01.2019, with a counter-claim noted by respondent no. 2 regarding defaults by the petitioners in tax payments.

Findings of Court:
The court disposed of the petition by referring the disputes to the DIAC and outlined the framework for the arbitration process.

Issues: The court addressed the necessity of an arbitrator's appointment following disputes among partners and the implications of pending defaults.

Ratio Decidendi: Parties are entitled to resolve disputes through arbitration as per their agreement, and the court facilitated this process by referring the matter to the DIAC for arbitration.

Result: Petition disposed of.

Table of Content
1. dispute arises from partnership deed. (Para 1 , 2)
2. arguments presented regarding disputes and counterclaims. (Para 3 , 4 , 5)
3. referral to arbitration and arbitrator's duties. (Para 6 , 7 , 8)
4. final order disposing the petition. (Para 9)

JUDGMENT

Sanjeev Sachdeva, J. Petitioners seek appointment of the Arbitrator and reference of disputes to the Arbitral Tribunal pursuant to the partnership deed dated 17.01.2019.

2. The two Petitioners and respondent no. 2 are partners of respondent no. 1 concern.

3. Learned Senior Counsel for the petitioner submits that certain disputes have arisen consequent to which the disputes need to be referred to the Arbitral Tribunal.

4. Mr. Brajendra Khandelwal - respondent no. 2 who is connected over video conferencing, submits that the fault lies with the petitioners as they are the one who have not paid any income tax or government dues for the last several years. He submits that he would also have certain counter-claims against the petitioner for their defaults.

5. Without prejudice to the above, learned Senior Counsel for the petitioner as well as respondent no. 2 pray that the parties be referred to Delhi International Arbitration Centre.

6. Accordingly with the consent of the parties, the disputes, inter-alia, claims and counter-claims are referred to the Delhi International Arbitration Centre (DIAC), which would appoint an arbitrator to arbitrate the disputes. The arbitration shall take place under the aegis of the DIAC in accordance with its rules and regulations.

7. The arbitrator would be entitled to charge fees in accordance with the schedule of fee stipulated by the DIAC.

8. The arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within one week of entering reference.

9. Petition is disposed of in the above terms.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top