IN THE HIGH COURT OF KERALA AT ERNAKULAM
S. MANU, J.
Sajid Pasha S/o Musthafa Kamal Pasha – Appellant
Versus
Abdunnasir P. S/o Aboobakkar P. – Respondent
A.R. No. 8 of 2025
Decided On : 12-12-2025
| Table of Content |
|---|
| 1. formation and management of partnership business. (Para 1 , 2 , 3 , 4) |
| 2. disputes regarding accounts and arbitration position. (Para 5 , 6) |
| 3. respondents' objections and counterarguments. (Para 7) |
| 4. hearing of legal representatives. (Para 8) |
| 5. arguments presented by the applicants and respondents on arbitration. (Para 9 , 10 , 11) |
| 6. importance and legal interpretation of section 21 of the act. (Para 12 , 13 , 14 , 15) |
| 7. judicial interpretation of disputes related to arbitration. (Para 16 , 17 , 18) |
| 8. notice under section 21 and its requirements. (Para 19 , 20 , 21) |
| 9. failure of the notice under section 21 and resulting consequences. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28) |
| 10. conclusion of the court refusing arbitration due to procedural deficiencies. (Para 29) |
ORDER :
1. Under the name and style “M/s. Roofs and Shades” applicants and respondents 1 and 2 formed a partnership firm with equal partnership. The partnership deed was executed on 5.2.2005. A copy of the same has been produced as Annexure-A1. The 1st respondent was the Managing Partner. According to the applicants, he along with the 2nd respondent- his wife, was managing the day-to-day affairs of the firm. Accounts were settled and profit was divided till the financial year 2010-11.
2. Later, another partnership deed was executed between the applicants and respondents 1 and 2 on 6.4.2011 with the name of the partnership as “M/s.Roofs and Shades Structural Solutions”. According to the applicants, the business of “Roofs and Shades” was carried over and continued by “Roofs and Shades Structural Solutions”. Management of the firm continued with the respondents 1 and 2.
3. It is alleged that in October 2019, the 1st applicant demanded the respondents 1 and 2 to provide the books of accounts for verification and for settlement of accounts for the year 2011 and also for sharing the profits from 2011 to 2019. However, respondents 1 and 2 did not provide the books of accounts. On 4.5.2020, there was a joint meeting of the partners at the residence of respondents 1 and 2 and consensus was arrived at regarding settling of accounts and management of the firm. Nevertheless, the commitments made in the meetings were not discharged by the respondents 1 and 2. It is also claimed that the respondents 1 and 2 had agreed to induct the 1st applicant as the managing partner.
4. Thereafter, there arose disputes with regard to sharing of profits. There were several discussions and communications between the parties. Since the issues could not be resolved, applicants, as per e-mail dated 29.9.2023, suggested to nominate a renowned Engineer as the Arbitrator. A printout of the e-mail communication is produced as Annexure-A3. There was no response from the respondents 1 and 2 and the only option left to the applicants was to initiate appropriate proceedings under the Arbitration and Conciliation Act,1996.
5. CMA (Arb.) No.1/2024 was filed under Section 9 of the Arbitration and Conciliation Act,1996 [henceforth mentioned as ‘the Act’ for conciseness] before the Commercial Court, Kozhikode by the applicants for various interim reliefs. Respondents 1 and 2 filed a counter affidavit. They stated in the counter affidavit that on the basis of mutual understanding between the applicants and themselves, they started some other firms and details of the firms were stated in the affidavit. Applicants allege that the partners of those firms are close relatives as well as friends of respondents 1 and 2. Respondents 1 and 2 filed I.A.No.2/2024 questioning the maintainability of CMA and it was dismissed by the Commercial Court by order dated 30.9.2024. Challenging the order passed by the Commercial Court, O.P.(C)No.2338/2024 was filed before this Court and the said case is still pending.
6. According to the applicants, different firms constituted by the respondents 1 and 2 are in fact managed by them and all the firms are constituted for the same purpose of the business of “M/s.Roofs and Shades” w
A request for arbitration must clearly detail the particular dispute to satisfy Section 21 of the Arbitration and Conciliation Act, 1996, triggering the commencement of proceedings and the calculatio....
A partner cannot submit a dispute to arbitration without express authority from all partners, as required by Section 19(2)(a) of the Indian Partnership Act.
The main legal point established is the court's reliance on the unequivocal admission of the respondent and the presence of his signature on the Deed of Retirement to affirm the existence of the arbi....
The referral court's scope under Section 11(6-A) is limited to the prima facie existence of an arbitration agreement. A formal notice under Section 21 is not mandatory if the respondent has prior kno....
The main legal point established is that the notice invoking arbitration must comply with the agreed dispute resolution mechanism and the statutory provisions, such as Section 19(2)(a) of the Indian ....
The main legal point established in the judgment is that the dispute amongst the partners regarding the dealings of the firm could be referred to arbitration as per the partnership deed, but once the....
The main legal point established in the judgment is the requirement for an unequivocal and unambiguous consent by the parties to arbitrate, and the application of the prima facie test to determine th....
Arbitration clauses in prior agreements continue to bind new partners despite subsequent agreements lacking such clauses; issues about stamp duty deficiencies can be raised in arbitration.
A unilateral right of appointment for an arbitrator in an arbitration agreement is impermissible; however, notice of intent to arbitrate, even when lacking technical precision, can suffice for procee....
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