9911796707
TMI Blog1970 (8) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... Ghanshyam Das Rs. 5000/- 3. Shri Kamal Kumar Agarwal -Rs. 20000/-, It is further provided that in addition to the above capital contribution Shri Kamal Kumar Agarwal shall arrange for further capital required for the business of the firm which shall bear an interest @ 9% per annum. But under the said agreement the profits and losses of the firm are to be determined equally among them that is to say each of the partners will have 1/3rd share in the profits and losses. Sometime in June 1969 disputes and differences arose between the petitioners on the one hand and the respondent on the other as set out in paragraph 9 of the petition. By a letter dated July 22, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u, J. over the partnership business. Thereafter the present application has been made by the petitioners on November 27, 1969. 2. The learned counsel for the petitioners bas drawn my attention to clause 14 of the agreement which reads as follows:-- That in case of any dispute and difference arising amongst tbe parties either in the interpretation of this business or in any matter touching the rights and liabilities of the partners either continuing all the terms or after it has ceased functioning in any other matter relating to in the partnership such dispute shall be referred to the arbitration of as many arbitrators as there may be parties in difference and the Award of the said arbitrators or Umpire selected by the arbitrators sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Under the circumstances Mr. Pyne has requested the court to proceed with the application. I agree with the contention of Mr. Pyne that the arbitration clause is not happily expressed. The words, the interpretation of this business and in any matter touching the rights and liabilities of the partners either continuing of the terms or after It has ceased functioning in any other matter relating to in the partnership are vague and give rise to more than one meaning. Firstly, dispute regarding the interpretation of the partnership business does not carry any sense. Secondly, disputes and difference in respect of matters after the partnership business bas ceased to function in any other matter relating to the partnership may be understood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am of the opinion that the arbitration clause as agreed upon by the parties would be unworkable inasmuch as there is a bona fide apprehension of the respondent in not getting a fair award after the two petitioners are allowed to nominate two arbitrators and the respondent to nominate one Arbitrator. There is no doubt that the parties agreed to such clause and it is the duty of the court to see that three arbitrators should decide the disputes as agreed upon by the respondent. But in the facts of this case the relationship between the parties is very strained and it is alleged that the respondent is not being allowed by the petitioner to take part in the business although his share of the capital is very much in excess of the joint contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he question of dissolution of partnership under Section 44(f) and fg) also decided by arbitration. But in the present case such intention cannot be spelt out from the arbitration clause. Reliance may be made on Oliver v. Hiller, (1959) 2 All ER 220 where an action claiming dissolution of the partnership on the ground that it was just and equitable to dissolve it has not been stayed although the arbitration clause provided that All disputes and questions whatsoever each shall either during the partnership or afterwards arise between the person ..... touching this agreement ..... or any account, valuation or division of assets, debts and liabilities to be made hereunder..... shall be referred to a single arbitrator. It may be added he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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