SANJIB BANERJEE,J. - (1.) The challenge here is to an arbitral award rendered on May 14, 2015 in a dispute between a retired partner of a law firm and the remaining partners of such firm.
(2.) The petitioner herein carried the reference to the agreed arbitrator, primarily seeking his share out of the fixed deposits standing to the credit of the firm. According to the petitioner, a part of the profits of the firm were routinely diverted for fixed deposits to be created therefrom. In other words, it is the petitioner's contention that a part of the profits that could have been taken home by the partners at the end of each financial year was voluntarily permitted to be retained by the firm by way of fixed deposits in banks. The petitioner claims in this Court, as he had claimed before the arbitrator, that at the time that a partner goes out of the firm, if a part of his income has been retained and fixed deposits created in banks, the partner's proportionate share out of the fixed deposits ought to be paid to him.
(3.) Clauses 19 and 22 of the partnership deed of the year 2003 which governed the arbitral reference may be noticed in this context: "19. In the event of death or retirement of any of the partners during the continuance of the said partnership the goodwill of the said partnership, the tenancy of the office premises and the office papers, furniture, safes, boxes and other fittings and law and other books and all other assets thereof shall vest automatically to the other surviving or continuing partners." "22. In case during the continuance of the partnership any of the partners dies or becomes incapacitated from further acting as a partner or retires after attainment of sixty eight years such partner or his heirs or legal representatives shall be paid by the other partners: (a) all amounts undrawn and lying to his credit in the current balance. (b) aggregate of the remuneration received for the five preceding years and the gross profits for the five years arising to his share after adjustment of any amount if drawn out more than his share of profit shall be paid in full satisfaction of his share in the outstanding bills, goodwill, furniture, fittings, law books and other assets. Such payment shall be made not later than six months from the death/ retirement of the partner, as the case may be from the till of the partnership and can be adjusted during next six years from the profits of the firm. Save as aforesaid the retiring partner or the heirs or legal representatives of the deceased partner shall have no right, title, goodwill or interest in the assets of the profession and shall not interfere with the running or administration of the profession of the said firm." ;