R. K. MISHRA Vs. KUNDANLAL SHAHNI
LAWS(PVC)-1948-8-126
PRIVY COUNCIL
Decided on August 03,1948

R. K. Mishra Appellant
VERSUS
Kundanlal Shahni Respondents


Cited Judgements :-

LAXMI NARAYAN VS. HARI KRISHAN [LAWS(P&H)-2008-11-107] [REFERRED TO]
HANSRAJ VELJEE VS. MAGANLAL VELJEE [LAWS(BOM)-1979-1-43] [REFERRED TO]
UNION OF INDIA VS. PRITHIPAL SINGH CO [LAWS(MPH)-1987-12-7] [REFERRED TO]
HOORA VS. ABDUL KARIM [LAWS(RAJ)-1968-12-15] [REFERRED TO]


JUDGEMENT

SARWATE, J. - (1.)THIS application in revision is against a decree of the First Additional District Judge, Jubbulpore, which reversed the decree of the Second Sub-Judge, Second Class, Jubbulpore, in a suit for filing the award. The first Court upon an application made to it under Section 14(2), Arbitration Act (Act x [10] of 1940) found that the award was invalid and liable to be set aside and accordingly dismissed the suit. On appeal the Additional District Judge has found that the award was valid and not liable to be set aside on any of the grounds urged and has made a decree in terms of the award. This application in revision is by the defendant who thereby seeks to have the decree of the appellate Court get aside and that of the first Court restored.
(2.)KUNDANLAL Shahni, non-applicant 1 here, and the applicant R.K. Mishra were, it is alleged, partners in a business carried on at Jubbulpore under the name of "Shahni & Co." The business was as restaurateurs, bakers and confectioners. The main centre of the business was in Sadar Bazar, Jubbulpore, but the business was also carried on at Khamaria and two other places, Neemkheda and the railway station. Originally, it is alleged, there were 3 partners but after some time one of the partners dropped out and R.K. Mishra and Kundanlal then continued to carry on the business. On 5th June 1943 they agreed to refer the dispute between them to 5 persons and drew up an agreement which is EX. P-1. This agreement provides for the appointment of the five persons Munshi Rai Shahni, N.B. Mankodi, Chhotelal, K.C. Mehta and Pyarelal as arbitrators. The arbitration agreement also recites that in respect of the business at Khamaria the parties had come to an agreement and Kundanlal Shahni was to pay Rs. 600 to R.K. Mishra and take over complete charge of the business at Khamaria and R.K. Mishra on receipt of that amount was to relinquish his right with respect to profit or loss in that business. The agreement farther provided: We both will accept the award whatever is given by the arbitrators in accordance with the talk that has been settled in the presence of the arbitrators after going through the accounts of Restaurant, Aerated Water Factory and Bakery of Shahni and Co. of Sadar. We will not have any objection thereto.
It appears that at the time when the arbitration agreement was executed the five persons named as arbitrators were present and the parties had discussed the points of differences between them in the presence of those persons and after having arrived at an agreement between themselves in respect of the Khamaria business, they decided to make a reference in respect of the business at Sadar Bazar.

(3.)THOUGH the five persons named had agreed to act as arbitrators, one of them, viz., Pyarelal, left Jubbulpore soon after 5th June 1948. In his place another gentleman V.S. Rajan was appointed and the five arbitrators, including Rajan, made an award on 6th September 1943, which is EX. P-13. In this they have set out that they were a Board of Arbitrators formed for the purpose of arbitrating on the points under dispute as between Shri Kundanlal Shahni and Shri R.K. Mishra, as partners of Messrs. Shahni and Co., restaurateurs, bakers and confectioners, etc. etc, situate at Sadar Bazar, Jubbulpore Cantonment. Then, they set out the points for decision and their findings on them and then concluded the operative part of the award as follows: We unanimously find and record herewith that the alleged partnership as between Messrs Kundanlal Shahni and R.K. Mishra has ceased to function as such on 6th April 1943, on which date Shri R.K. Mishra ceased taking active managing participation in the running of the concern and as such deem that Shri R.K. Mishra is not entitled to any share in the profits Bubsaquent to that' date, i.e., 6th April 1943, since which date the entire concern is being run under the direct and sole proprietorship and management of Shri Kundanlal Shahni.


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