HIGH COURT OF BOMBAY
HON'BLE SHRI JUSTICE G. S. KULKARNI
PRIYA RISHI BHUTA AND ANR – Appellant
Versus
VARDHAMAN AND DEVELOPMENT CORPORATION AND 14 ORS – Respondent
ARBAP/245/2021
2022:BHC-OS:4523 Prajakta/Vidya IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION APPLICATION NO. 149 OF 2021 WITH COMMERCIAL ARBITRATION PETITION NO. 410 OF 2021 Priya Rishi Bhuta & Anr. …Applicants/Petitioners V/s.
Vardhaman Engineers and Builders & Ors.... Respondents WITH COMMERCIAL ARBITRATION PETITION NO. 412 OF 2021 WITH ARBITRATION APPLICATION NO. 245 OF 2021 WITH ARBITRATION APPLICATION NO. 246 OF 2021 Priya Rishi Bhuta & Anr. … Petitioners V/s.
Vardhaman Land Development Corporation & Ors.... Respondents WITH COMMERCIAL ARBITRATION PETITION NO. 605 OF 2021 Priya Rishi Bhuta & Anr. … Petitioners V/s.
Pioneer Housing & Ors. ... Respondents WITH COMMERCIAL ARBITRATION PETITION (L) NO. 15937 OF 2021 WITH ARBITRATION APPLICATION NO. 310 OF 2021 Priya Rishi Bhuta & Anr. … Petitioners V/s.
Pioneer Construction and Consultants & Ors. ... Respondents Mr. Sanjay Jain a/w. Mr. Nishant Sasidharan, Mr. Ashvin Bhalekar, Mr. Ashwin Bhadang, Ms. Shruti Lakhani and Ms. Khushbu Shah i/b. Dipti Shah for Applicants/Petitioners.
Mr. Mayur Khandeparkar with Mr. Rajesh A. Revankar i/b. A.G.
Revankar & Co. for respondent nos. 1, 5 to 10.
Mr. Ankit Lohia with Mr. Chetan Yadav and Mr. Samarth Patel i/b. R. V. &
Co. for Respondent Nos.2 & 3. CORAM :G.S. KULKARNI, J.
RESERVED ON : 12 APRIL 2022.
PRONOUNCED ON : 6 JUNE 2022 JUDGMENT:
1. These are four applications filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short, “the Act”) whereby the applicants, who claim to be the daughters of deceased Amritlal Jain, who was a Partner in the partnership firm - respondent no.1 in each of these applications, are before the Court praying that the disputes and differences between the applicants and the respondents as arising under these partnership deeds be referred to arbitration.
2. The applicants are invoking the arbitration agreement as contained in each of the partnership deed. The facts in relation to all these applications are common, except that respondent no.1-partnership firm in each of these applications is different. Also the arbitration clause as contained in each of the partnership deed(s) is similar. The arbitration agreement as contained in clause 19 reads thus:- “19. During the continuance of the partnership or at any time afterwards, if any difference arises among the parties hereto or the executors or administrators or their heirs such difference shall be forthwith referred to an arbitrator or arbitrators as appointed by partners. The decision of arbitrator or arbitrators will be final and binding on all the parties hereto and shall be deemed to an arbitration in accordance with and subject to the provisions of the Indian Arbitration Act, 1940 (X of 1940) and Statutory modification or re-
enactment thereof for the time being in force.”
3. For convenience, the facts pertaining to Arbitration Application No. 149 of 2021 are being referred. Respondent no.1 is the partnership firm of which the applicants claim to have interest as per clause 17 of the Partnership Deed dated 12 March, 2012. Respondent nos.2 and 3 are existing partners. Respondent no.4 has been inducted as a partner after the death of applicants’ father Mr. Amritlal Jain. Respondent no.5 is the original partner, who is a signatory to the deed of partnership. Respondent nos. 6 to 10 were inducted as partners within the percentage of respondent no.5’s share in the partnership firm and as permitted under the partnership deed. In other words, respondent nos.4, 6, 7 and 10 are not the partners in the original partnership deed, and have been inducted subsequently by the original partners within the share of such original partners and without disturbing such fixed share.
4. The case of the applicants is that respondent no.1 was originally constituted on 14 November, 1985 in which 20% of the share in the profits and losses of respondent no.1 firm stood in the name of Utsav Amritlal Jain. Respondent no.1 firm was reconstituted from time
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