IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.T.SANKARAN TUESDAY, THE 21ST DECEMBER 2010 / 30TH AGRAHAYANA 1932 AR.No. 25 of 2010 PETITIONER K.S.SANJEEV, RESIDING AT KONCHERRY HOSUE, MAYITHARA P.O., CHERTHALA SOUTH, ALAPPUZHA DISTRICT. (PARTNER OF ERSTWHILE PARTNERSHIP FIRM"THE KONCHERRY COIR FACTORIES"MAYITHARA P.O.,CHERALA.) BY ADV. SRI.R.HARIKRISHNAN SRI.N.ASOK KUMAR RESPONDENTS : 1. DR.K.S.SUBASH, KONCHERRY HOUSE (NOW RESIDING AT SREE VALSAM)MAYITHARA P.O., CHERTHALA, (MANAGING PARTNER OF ERSTWHILE PARTNERSHIP FIRM “THE KONCHERRY COIR FACTORIES” MAYITHARA P.O.,CHERALA) 2. K.S.SHIBU, RESIDING AT KONCHERRY HOUSE, MAYITHARA P.O.,CHERTHALA, (PARTNER OF ERSTWHILE PARTNERSHIP FIRM"THE KONCHERRY COIR FACTORIES" MAYITHARA P.O.,CHERALA) 3. SUSHMA DEVI, RESIDING AT MULAMOOTIL (H) CHARAMANGALAM,KANJIKUZHI, CHERTHALA (PARTNER OF ERSTWHILE PARTNERSHIP FIRM"THE KONCHERRY COIR FACTORIES" MAYITHARA P.O.,CHERALA) 4. K.S.SHEELA, RESIDING AT CHARANGATTU BANGALOW, MAYITHARA P.O.,CHERTHALA SOUTH, (PARTNER OF ERSTWHILE PARTNERSHIP FIRM "THE KONCHERRY COIR FACTORIES" MAYITHARA P.O.,CHERALA) 5. K.S.SHYLA PRADEEP, RESIDING AT PONATH HOUSE, ARTHINKAL P.O.,CHERTHALA, (PARTNER OF ERSTWHILE PARTNERSHIP FIRM"THE KONCHERRY COIR FACTORIES" MAYITHARA P.O.,CHERALA) 6. K.S.SHYNI SABU, RESIDING AT SOULEKHA, T.C.NO.13/1519,BERMA ROAD,KUMARAPURAM, THIRUVANANTHAPURAM,(PARTNER OF ERSTWHILE PARTNERSHIP FIRM"THE KONCHERRY COIR FACTORIES" MAYITHARA P.O.,CHERALA) R1 TO R6 BY ADV. SRI.K.C.ELDHO THIS ARBITRATION REQUEST HAVING BEEN FINALLY HEARD ON 21/12/2010, ALONG WITH AR NO.31 OF 2010, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: K.T.SANKARAN, J. ---------------------------------------------------------- Arbitration Request NOS.25 & 31 OF 2010 ----------------------------------------------------------- Dated this the 21st day of December, 2010 O R D E R Arbitration Request No.31 of 2010 is filed by three firms, namely, M/s.The Koncherry Coir Factories, M/s.Koncherry International and M/s.Imperial Coir Yarn Trading Company. These firms are represented by the Managing Partner Dr.K.S.Subhash. Arbitration Request No.25 of 2010 is filed by K.S.Sanjeev, partner of M/s.Koncherry Coir Factories. The prayer in A.R.No.25 of 2010 filed by K.S.Sanjeev is to appoint an arbitrator to resolve the dispute between the petitioner and respondents therein pertaining to the dissolution of partnership at will and for settlement of accounts. The prayer in A.R.No.31 of 2010 is to appoint an arbitrator to resolve the disputes between the petitioners and the respondent therein and for settlement of accounts in the light of clauses 22, 21 and 22 respectively of Annexures A1 to A3 reconstituted partnership deeds of the three firms mentioned above. There is no dispute that the partnership deeds contain the arbitration clause. Arbitration Request Nos.25 and 31 of 2010 :: 2 :: 2. Annexure A1 in A.R.No.31 of 2010 is the reconstituted partnership deed in respect of M/s.Koncherry Coir Factories. Annexure A2 in A.R.No.31 of 2010 is the deed of reconstitution in respect of M/s.Koncherry International, whereas Annexure A3 partnership deed relates to M/s.Imperial Coir Yarn Trading Company. 3. According to Dr.K.S.Subhash, the partner K.S.Sanjeev was expelled from the three partnership firms mentioned above, while according to K.S.Sanjeev, he was not expelled. The notice of expulsion issued to K.S.Sanjeev is dated 5.5.2010 (Annexure A3 in A.R.No.25 of 2010 and Annexure A4 in A.R.No.31 of 2010). It is pointed out by the learned counsel for K.S.Sanjeev that even before the issue of the notice dated 5.5.2010, K.S.Sanjeev had issued notice dated 30.4.2010 (Annexure A2 in A.R.No.25 of 2010) for dissolution of the partnership, namely, M/s.Koncherry Coir Factories. In these Arbitration Requests, it is not necessary to decide the question whether K.S.Sanjeev was expelled or whether he issued notice for dissolution before the expulsion. Arbitration Request Nos.25 and 31 of 2010 :: 3 :: 4. In respect of M/s.Koncherry Coir Factories, the parties had agreed to appoint Justice K.A.Nayar (Retired) as the Sole Arbitrator. The arbitration proceedings were commenced before Justice K.A.Nayar (Retired). However, due to the reasons stated in the notice dated 31.5.2010 and also due to his poor health, the Arbitrator tendered his resignation. There is dispute between the parties as to the reason for tendering resignation by the Arbitrator. It is not necessary to decide that dispute in these Arbitration Requests. 5. In these Arbitration Requests, all the parties are of the view that an Arbitrator is to be appointed. They also expressed the view that a retired Judge of the High Court of Kerala may be appointed as the Arbitrator. Various names were suggested and the counsel for the parties agreed that Justice M.Ramachandran (Retired) can be appointed as the Sole Arbitrator. 6. According to K.S.Sanjeev, he had instituted O.S.Nos.313 of 2010 and 315 of 2010 before the Munsiff's Court, Cherthala for a declaration that he was not expelled and that he continues to be the partner of M/s.Koncherry International and M/s.Imperial Coir Yarn Arbitration Request Nos.25 and 31 of 2010 :: 4 :: Trading Company. According to the learned counsel appearing for Dr.K.S.Subhash, the above suits were dismissed upholding the contention of the defendant that the suits were not maintainable in view of the arbitration clause in the agreements. It is not very relevant as to whether the suits are pending or whether they were disposed of. It is not necessary to decide the controversy between the parties as to the pendency of the suit or as to the disposal of the suits, for the purpose of disposal of these Arbitration Requests. In the facts and circumstances of the case and for the reasons mentioned above, the Arbitration Requests are allowed. Justice M.Ramachandran (Retired) is appointed as the Sole Arbitrator for resolving the disputes among the partners in respect of M/s.Koncherry Coir Factories, M/s.Koncherry International and M/s.Imperial Coir Yarn Trading Company. The Arbitrator would be entitled to fix his fee. (K.T.SANKARAN) Judge ahz/