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2018 Supreme(Guj) 1172

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.B. PARDIWALA, J.
Krishna Dairy Farm and Colddrinks and Ors. - Appellants
Vs.
Rasikbhai Khodidas Patel - Respondent
First Appeal No. 2663 of 2016 and Civil Application No. 1 of 2016
Decided On : 26-06-2018

Advocates:
Advocate Appeared:
For the Appellant :Mehul S. Shah, Sr. Advocate and Daxay D. Patel
For the Respondents: Sunit Shah, Abhisst K. Thaker and Harshang H. Patel

Headnote:

Arbitration and Conciliation Act, 1996 – Section 37 read with Rule 217 of Gujarat High Court Rules, 1993 – Appeal against arbitral award – On production of partnership-deed, defendants were left with only one option either to proceed with suit having filed a detailed written statement disclosing their defence or prefer an application under Sec. 8 of Act, 1996 invoking arbitration clause – Having realised that on production of deed of partnership, entire defence in written statement filed by defendants would miserably fail, defendants opted and took a chance to prefer application under Sec. 8 of Act, 1996 – Court below was justified in law in rejecting Chamber Summons – There is no error apparent on face of impugned order warranting any interference in this First Appeal – Appeal dismissed. (Paras 37, 38 and 39)

JUDGMENT :

J.B. PARDIWALA, J.

1. This First Appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 read with Rule 217 of the Gujarat High Court Rules, 1993, is at the instance of the original defendants and is directed against the order passed below the Chamber Summons Exh. 36-37 in the Civil Suit No. 3117 of 2013.

2. For the sake of convenience, the appellants herein shall be referred to as the original defendants and me respondent herein shall be referred to as the original plaintiff.

3. It appears from the materials on record that the plaintiff preferred the Civil Suit No. 3117 of 2013 in the City Civil Court at Ahmedabad for dissolution of the partnership firm and accounts. Having regard to the main issue involved in this First Appeal, I deem it necessary to reproduce the averments made in the plaint as under:

“1. That in the year 1979-1980, Shri Khodidas Chaturbhai Patel (father of plaintiff, defendant No. 2, defendant No. 3, Vishnubhai & Rameshbhai - five sons) started business in dairy product in the name and style “Shri Krishna Dairy Farm and Cold-drinks” at the rented premises (Shop No. 3) situated in ground-floor bearing Municipal Tenament No. 517-11-0166-0001-9 which is part of Margi Apartment near Old High Court Railway Crossing, Navrangpura, Ahmedabad-9.

2. That the plaintiff was assisting the father in the said business and since 1985-1986, the plaintiff had been looking after the said entire business.

At that time the eldest son Mr. Vishnubhai was doing his business of power-loom spare-parts at Ichalkaranji, Kolhapur, Maharashtra.

The defendant No. 2, Rameshbhai Khodidas Patel was doing his own business in the name and style of Ambica Dugdhalay in Shahpur area, Shahpur, Ahmedabad.

The defendant No. 3, Rajeshbhai Khodidas Patel was a minor (sic) about 17-18 years at that time and was studying.

Sureshbhai was aged about 21-22 years and was studying at that time.

3. That Shri Khodidas Chaturbhai Patel died on 12-12-1999.

4. It is submitted that Shop No. 3 (part of Flat No. 4) situated the ground-floor of Margi Apartment Go-op. Hsg. Soc. Ltd. purchased by father Khodidas Chaturbhai Patel in his own name and after his death as per his Will the plaintiff and other four brothers became joint-owners of the said property.

5. That after the death of father Khodidas Chaturbhai Patel, all the five brothers, (sons of deceased Khodidas Chaturbhai Patel) decided to convert the said business into partnership business and they formed a partnership vide document of partnership dated 13-12-2000. In the said business, all the five brothers had equal share in the profit and loss of the said partnership.

6. It is submitted that Vishnubhai Khodidas Patel sold away his 1/5 undivided share by a registered document dated 31-3-2003 in favour of other four brothers, and therefore, other four brothers had 1/4 share each in the said property.

Thereafter, Sureshbhai Khodidas Patel also sold away his undivided ¼ share in the said property by a document dated 25-7-2005 in favour of other three brothers namely plaintiff and defendant Nos. 2 and 3. In the circumstances therefore, the plaintiff and defendant Nos. 2 and 3 became joint-owners, each having 1/3 undivided share in the said property in which business is being run.

7. It is submitted that Vishnubhai Khodidas Patel retired from the partnership vide document of retirement dated 6-8-2002 and Sureshbhai also retired from the partnership vide document of retirement dated 31-3-2005. Thus, on and from 1-4-2005, the business of the defendant No. 1 firm namely “Shri Krishna Dairy Farm and Cold-drinks” is being run by the plaintiff and defendant Nos. 2 and 3 as partners.

The business of the partnership was to be run in the above-said property which was the joint-property of all the five brothers and later on it became joint-property of three brothers namely-plaintiff and defendant Nos. 2 and 3.

8. The said business was being run smoothly till 2001. It is submitted that in the year 2001, the plaintiff me














































































































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