JUDGMENT :

(J. Sreenivas Rao, J.)

1. Brief facts in C.M.A. No.488 & 489 of 2022 are as under:

The appellants have filed these two appeals aggrieved by the common order passed in Arbitration OP (in short ‘AOP) No’s.554 of 2014 and 594 of 2016 on the file of the Court of Principal District Judge, Karimnagar, dated 28.09.2022.

2. For the sake of convenience, the parties hereinafter are referred to as they were arrayed in Arbitration O.P. No’s.554 of 2014 and 594 of 2016.

3. The respondents/claimants herein have initiated arbitration proceedings under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as ‘the Act’ for brevity) vide Arbitration Application No.183 of 2014 before this Court and this Court was pleased to dispose of the Arbitration Application on 27.05.2015 appointing Sri Narayana Chawla, District and Sessions Judge (Retd.) as Sole Arbitrator.

4. The respondents 1 to 3 herein have filed Claim Petition in Arbitration O.P. No.594 of 2016 before the Arbitral Tribunal claiming the following reliefs:

a) Declaring that proportionate shares of the parties in the partnership i.e. Petitioner No.1 holds 25%, Petitioner No.2 holds 25%, Petitioner No.3 holds 10% and Respondent holds 40% share.

b) That the partnership Firm M/s Mamatha 70 MM A/c Theatre, stood dissolved on 27.05.2014.

c) To direct the respondent to pay a sum of Rs.30,95,400/- (Rupees Thirty Lakhs Ninety Five Thousand Four Hundred only) towards share of petitioners as shown in Schedule B along with interest from 01.08.2015 till realization @ Rs.18% P.A. on Rs.30,95,400/-and in default of payment of said amount, Page 43 of 64 AOP 554 of 2014 & AOP 594 of 2016 PDJ Karimnagar the same be deducted from out of the share of the respondent payable from the sale proceeds of Schedule A specified assets of the dissolved Firm.

d) To direct Respondent to pay a sum of Rs.78,000/-from 01.08.2015 onwards towards rents realized with interest @ 18% PA till realization.

e) To direct Respondent to pay interest @ 18% PA to petitioners on Rs.6,00,000/- security deposit amount lying with the Respondent till surrender of lease or sale of asset.

f) That Schedule specified asset of the Firm, i.e. land and building along with its machinery and furniture be sold by Executing Court in the following manner, i.e. :

i) Sale be held by way of inter se bidding between the partners by fixing a reserved bidding not below the basic market value as on the date of sale and if the highest bidder fails to pay the same or in the case of disagreement – Alternatively –

ii) Sell the same by way of public auction by fixing a reserved bidding for all or to be conducted by the Executing Court in accordance with law and that either of the parties is to be at liberty to bid at the sale.

iii) And that out of the receipt of sale proceeds thereof, the same be distributed in the ratio of respective shares i.e. to Petitioner No.1 @ 25%, Petitioner No.2 @ 25%, Petitioner No.3 @ 10% and Respondent@ 40%, after deducting the expenses of sale etc.,

AND pass such other or further orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.

5. In the said claim petition, the respondents 1 to 3 herein contended that they along with appellant No.1 herein constituted a partnership firm under the name and style of M/s Mamatha 70 MM, A/c Theatre vide partnership deed dated 04.11.1996. As per the said partnership deed, the appellant No.1 holds 40% share, respondent No’s. 1, 2 and 3 hold 25%, 25%, and 10% shares respectively. They further contended that claim schedule property is the partnership property along with all the attached moveable and immoveable properties situated on the land admeasuring Ac.0.22 gts in Sy.No.1104 of Karimnagar bearing House No.9-1-170 of Karimnagar District. The respondents further contended that on 01.09.2014 themselves and appellant No.1 gave the cinema theatre on lease in favour of one Bonala Srikanth on monthly rent of Rs.80,000/- and the cantee