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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