ARUL SIGAMANI Vs. PAUL DURAI AND PERUMAL

JUDGEMENT

(1.) BY this Application filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short -the Act-), the Petitioners have prayed for appointment of an Arbitrator namely, Shri P. Pandi, Advocate, High Court, Chennai, as the sole Arbitrator to Adjudicate all the disputes and claims raised by the Petitioners against the Respondents arising out of a Partnership Agreement dated 01st October, 1979.

(2.) THE Petitioners- case is that they entered into a Partnership Agreement under the name and style of -Kumari Minerals-, a registered Firm, for carrying on business in mining of minerals and a mining lease was granted on 15th May, 1974 in favour of the Firm, and a mining lease was also executed. At the initial stage, the First Respondent was authorised by the other Partners of the aforesaid Firm to represent the Partnership Firm, and on the basis of that, the First Respondent applied to the department for issue of permit for quarrying garnet sand and also to represent the Firm before the authorities concerned. Subsequently, under a Deed of Partnership dated 7th January, 1978, the First Petitioner was appointed as the Managing Partner. Subsequently, by another document dated 9th September, 1978, the Fourth Respondent was appointed as the Managing Partner of the firm. However, from 14th February, 1981, the First Petitioner along with Respondents 2 & 3 acted as Joint Managing Partners. As per the terms of the Partnership Agreement dated 26th September, 1984, both the First and the Fourth Respondents jointly applied for permit to quarry garnet sand and to transport on behalf of the Firm, which arrangement continued and by a Deed of Reconstitution dated 09th October, 1984 both the First and the Fourth Respondents were permitted to jointly apply for permit and for paying the royalty on behalf of the Partnership Firm.

(3.) THE Petitioners- case is that, in these circumstances, they issued legal notice on 10th June, 2005 to the Respondents invoking the Arbitration clause and requested the Respondents to appoint Shri P. Pandi, as the sole Arbitrator. Since the Respondents did not heed to the request of the Petitioners, the instant Application has been filed under Section 11 (6) of the Act.