The court ruled that partnerships cannot be dissolved without proper evidence and consent, emphasizing the need for independent arbitration for distinct entities.

ORDER :

In O.P.Nos.310 to 313 of 2021, the petitioners have challenged the impugned preliminary award dated 18.03.2021 passed by the Arbitral Tribunal under Section 34 (2)(a)(iv), Section 34 (2)(b)(ii) and Section 34 (2-A) of the Arbitration and Conciliation Act, 1996.

2. In Arb.O.P.(Com.Div.) Nos.229 to 232 of 2021, the petitioners have prayed for termination of the mandate of the Arbitral Tribunal presided over by the Hon'ble Mr.Justice K.Kannan, Retired High Court Judge, from continuing with the arbitral proceedings who passed the impugned preliminary award dated 18.03.2021.

3. The impugned preliminary award dated 18.03.2021 passed by the Arbitral Tribunal addresses disputes arising from 7 different claim petitions filed by the partners (family members of Late Mr.V.G.Panneerdas) of the three Partnership Firms carried on by them viz., M/s.V.G.Panneerdas & Company, M/s.V.G.P. Investments and M/s.V.G.P. Beach Housing. Details of the Original Petitions challenging the impugned preliminary award dated 18.03.2021 passed in the 7 claim petitions are as under:-

4. In Arb.O.P.(Com.Div.) Nos.229 to 231 of 2021 and in O.P.Nos.310 to 312 of 2021, the three Partnership Firms viz., M/s.V.G.Panneerdas & Company, M/s.V.G.P. Investments and M/s.V.G.P. Beach Housing are the Petitioner No.1. The four of the partners of these three partnership firms namely Mr.V.G.Santhosam (Brother of Late Mr.V.G.Panneerdas), Mr.V.G.P.Ravidas, Mr.V.G.P.Rajadas and Mr.V.G.P.Babudas (sons of Mr.V.G.Panneerdas) are the Petitioner Nos.2 to 5 respectively.

5. In Arb.O.P.(Com.Div.) No.232 of 2021 and in O.P.No.313 of 2021, four of the partners of these Partnership Firms namely Mr.V.G.Santhosam, Mr.V.G.P.Ravidas, Mr.V.G.P.Rajadas and Mr.V.G.P.Babudas are the Petitioner Nos.1 to 4.

6. For the sake of clarity, the ranks of the respective parties referred to in this order are to the rank of the parties as arrayed in Arb.O.P.(Com.Div.) Nos.229 to 231 of 2021 and in O.P.Nos.310 to 312 of 2021.

7. The disputes among the partners of the Partnership Firms carried on by them were referred to arbitration by this Court pursuant to an Order dated 19.06.2019 in O.P.Nos.577 to 579 of 2018 filed by the petitioners herein, along with respondent Nos.4 and 5 namely Mr.V.G.P.Prasaddas and Mr.V.G.P.Murphydas, to appoint and constitute an Arbitral Tribunal to resolve the dispute. By an Order dated 19.06.2019 in O.P.Nos.577 to 579 of 2018, this Court appointed Hon'ble Mr.Justice K.Kannan, Retired Judge of Punjab and Haryana High Court who was formerly a Judge of this High Court as the Arbitrator.

8. The Hon’ble Arbitrator received the Appointment Order on 07.07.2019 and issued Notices to the parties on the same day and thus entered upon the reference on 08.07.2019.

9. By the impugned preliminary award dated 18.03.2021, the Arbitral Tribunal has allowed the prayer sought by the claimants in Claim No.1 of 2019 (respondent Nos.1 and 2 herein namely V.G.S Vinoth Raj and V.G.S.Selvaraj, the son and father) for dissolution of the Partnership Firms.

10. The Arbitral Tribunal has declined the reliefs sought by the petitioners herein in Claim Nos.2 to 4 for the valuation of Firms and permission to continue the Firms with exit directions for certain respondents.

11. Claim Nos.5 to 7 filed by the respondent No.3 namely V.G.S.Rajesh Alias Amaladas Rajesh herein was struck-off by the Arbitral Tribunal. However, it directed that the dissolution ordered under Claim No.1 of 2019 would