The principle of Quantum Meruit does not apply when there is a contract between the parties covering certain transactions.

The appellant in these appeals is M/s. Jaya Engineering Works, A Partnership Firm, Represented by its Managing Partner, Thiru.K.T.Ramakrishnan, D.No.36, Developed Plot Estate, Thuvakudi, Trichy. The said firm was an ancillary unit under Bharat Heavy Electricals Limited, Trichy. It was involved in doing fabrication works on contract basis with Bharat Heavy Electricals Limited for the years 1989-1990, 1990-1991 and 1991-1992. In fact the said firm had been doing works for Bharat Heavy Electricals Limited since 1978. But dispute arose with regard to the payments made in respect of the aforesaid three years. Therefore, the arbitration proceedings were initiated. The arbitration proceedings after a long and chequered history culminated in an award dated 22.11.2013 in favour of the appellant firm. To set aside the said award, Bharat Heavy Electricals Limited filed Arbitration O.P.Nos.5,6 and 7 of 2014 before the learned Principal District Judge, Thiruchirappalli. The proceedings were under the old Arbitration Act, 1940. Therefore, to pass a decree in terms of the award, the appellant filed Arbitration O.P.Nos.22, 23 and 24 of 2014. The learned Principal District Judge, Thiruchirappalli, by the impugned common order dated 24.03.2015, allowed the applications filed by Bharath Heavy Electricals Limited, Trichy, by setting aside the impugned award and dismissed the applications filed by the appellant firm. Aggrieved by the same, these appeals have been filed.

2. The learned counsel appearing for the appellant reiterated the grounds set out in the grounds of appeal.

3. Per contra, the learned counsel appearing for Bharath Heavy Electricals Limited, wanted this Court to sustain the impugned order passed by the lower Court.

4. This Court considered the rival contentions carefully and also perused the materials on record.

5. It is clear from the evidence available on record that Jaya Engineering Works originally comprised only Thiru.K.T.Ramakrishnan and Mrs. R.Padmavathi, as partners. There was a reconstitution. Four more partners were added to the existing firm. On 26.06.2000, all the six partners transferred all the rights, assets and liabilities in favour of the reconstituted partnership firm, namely, R.V. Enterprises. Both Thiru.K.T.Ramakrishnan and Mrs. R.Padmavathi released their rights vide Release Deed dated 30.09.2000. This has been established with reference to Ex.R.1 and Ex.R.3. Thus from 01.10.2000, the firm Jaya Engineering Works has ceased to exist. Even Plot No.D.36, at Thuvakudi, Trichy, allotted by the Tamil Nadu Small Industries Development Corporation Limited, now stands in favour of R.V. Enterprises. The said plot was originally allotted to Jaya Engineering Works vide Assignment Deed dated 04.04.1989 marked as Ex.R.5. The encumbrance certificate dated 27.10.2009 marked as Ex.R.7 shows that R.V. Enterprises now holds the said plot. The partners of R.V. Enterprises vide letter dated 26.08.2002 marked as Ex.R.4 had withdrawn the arbitration demand pertaining to the years in question. These aspects have been dealt with in considerable detail by the lower Court in paragraph Nos.9 and 10 of the impugned order. It clearly shows that a non existing firm has chosen to continue the arbitration proceedings and also filed the present appeals.

6. The learned counsel appearing for the appellant contended that as per the Division Bench Judgment of this Court reported in (2010) 4 C.T.C. 58 (Shree Gomathy Shankar Transports V. The State of Karnataka) even after dissolution of firm, partners of firm are called partners and the present proceedings are maintainable and it is well within their right to continue the proceedings for the purpose of realizing their claims.

7. This Court is unable to agree with the said submissions of the appellant's counsel. It is not as if Jaya Engineering Works got dissolved and that the subject proceedings are only to realize the assets due to the dissolved firm. On the other hand, there was a reconstitut