- (1.) Leave granted. This appeal by special leave is filed against the order dated 27.10.2005 passed by the Delhi High Court under section 11 of the Arbitration and Conciliation Act, 1996 ('Act' for short) in Arbitration Application No.200 of 2005 and the order dated 9.12.2005 rejecting the application for review.
(2.) The appellant and respondents 3 and 4, carrying on business in partnership under the name and style of 'Matchless Industries of India' (5th respondent herein), entered into a partnership with Respondents 1 and 2, as per deed of partnership dated 1.3.1995 to carry on the business under the name and style of M/s. Controls and Matchless Industries. Appellant, Respondent No. 3 and Respondent No. 4 as partners of 'Matchless Industries of India' were together shown as the first party to the partnership and Respondents 1 and 2 together were shown as the second party to the partnership. Clause (14) thereof provided for settlement of disputes among the partners by arbitration and the same is reproduced hereinbelow : "Any dispute or difference which may arise between the partners or their representatives with regard to the construction, meaning and effect to this deed or any part thereof or respecting the accounts, profit or losses of the business or the rights and liabilities of the partners under this deed or the dissolution or winding up of the business of the partnership or any other matter relating to the firm shall be referred to arbitration of sole arbitrator in accordance with the provisions of the Indian Arbitration Act."
(3.) The said firm was dissolved as per deed dated 24.12.2001. It is stated that certain disputes arose between the parties in connection with certain claims by Respondents 1 and 2 on dissolution of the said firm of M/s Controls and Matchless Industries. Respondents 1 and 2 sent a communicated dated 22.8.2003 to the appellant and respondents 3 to 5 seeking 'accounts'. The fourth respondent sent a letter dated 17.12.2003 on the letterhead of 'Matchless Industries of India' stating that he would ensure that a sum of Rs.53,81,585/- is paid to respondents 1 and 2. Thereafter, respondents 1 and 2 sent a notice dated 27.6.2005 to appellant and respondents 3 to 5, claiming that the amounts mentioned therein were due to them and sought concurrence for the appointment of Mr. Abhinav Vasisht, Advocate, as sole arbitrator, to decide the dispute. The appellant sent a reply dated 21.7.2005 contending that there cannot be any arbitration as the Dissolution Deed did not contain any arbitration clause.;