R. F. Nariman, J. - (1.) The present case arises out of a partnership dispute in which an FIR dated 17.11.2017 was lodged by one of the partners alleging siphoning of funds and various other business improprieties that were committed. The FIR is at present under investigation.
(2.) An Arbitration Petition dated 02.01.2018 was filed by the appellant before the High Court under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an Arbitrator under the Arbitration clause which is to be found in the partnership deed between the parties which is dated 30.01.2015. The High Court, by the impugned order dated 06.12.2018, has cited our judgment in 'A. Ayyasamy v. A. Paramasivam and Others, 2016 10 SCC 386' and after extracting paragraph 26 from the said judgment has held: " .The allegation of fraud that was levelled against the appellant was that he had signed and issued a cheque of Rs.10,00,050 on 17th June, 2010 of Hotel Arunagiri in favour of his son without the knowledge and consent of the other partners i.e. respondents. It was a mere matter of account which could be looked into and found out even by the arbitrator. The facts of the instant case however are much more complex as the materials on records disclose. This Court however does not intend to make any comments on the merits of the allegations lest it may prejudice the case of the parties in an appropriate proceeding before competent court. However, considered in totality this Court is of the firm view that the nature of the dispute involving serious allegations of fraud of complicated nature are not fit to be decided in an arbitration proceedings. The dispute may require voluminous evidence on the part of both the parties to come to a finding which can be only properly undertaken by a civil court of competent jurisdiction."
(3.) Consequently, while purportedly following this judgment, the Section 11 application was dismissed.;