1 23.arbp.385.09.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION skt ARBITRATION PETITION NO. 385 OF 2009 AND ARBITRATION PETITION NO. 29 OF 2009 Aashish C. Chheda & Anr. ... Petitioners Vs. Sarla K. Chheda & Ors. ... Respondents ...... Mr.Sanjay Jain a/w. Ms.Nalini Gada i/by Harakhchand & Co. for the Petitioner. Mr.S.U.Kamdar, Senior Counsel a/w. Mr.Pranav Sampat i/by M/s.Thakore Jariwala & Associates for Respondents. ...... CORAM : S.J. VAZIFDAR, J. DATE : OCTOBER 1st, 2010. P.C. 1 This is a petition under Section 9 of the Arbitration and Conciliation Act, 1996. 2 By consent, Arbitration Petition No.29 of 2009 is placed on board and heard finally. 3 It is admitted that the disputes and differences between the partnership firm be referred to the Arbitral Tribunal. 4 Mr.Kamdar, the learned counsel appearing for the Respondents confirmed that an amount of about Rs.4 crores 50 lakhs recovered by the Respondents belongs to the firm. He states that the amounts are 2 23.arbp.385.09.sxw deposited in the account of the Union Bank, Veer Nariman Road Branch and Abudhabi Bank, V.N.Road Branch. The Respondents agree and undertake not to deal with the said amount in any matter whatsoever except for investing and reinvesting the same upon maturity, after notice to the Petitioner’s Advocate. The undertakings are accepted. 5 Mr.Jain, the learned counsel appearing for the Petitioner then applied for the appointment of the Court Receiver for prosecuting the suits filed by the firm against various tenants. Mr.Kamdar submitted that the appointment of the Court Receiver would unnecessarily complicate the prosecution of these proceedings. He stated that the Petitioner has no objection to the Petitioner’s prosecuting the said litigation on behalf of the firm. In this view of the matter, I am not inclined to appoint a Court Receiver for the purpose of prosecuting the litigation as against the tenants. 6 The Petitioners are entitled to elect on or before 31st October 2010 if they are desirous of prosecuting the proceedings on behalf of the firm. In the event of their so electing, they shall be entitled to do so. In that event, the Petitioners not desiring to prosecute the litigations, the Respondents shall continue to prosecute the same. In either case, all the other parties shall be entitled to notice of all applications that may be made as well as copies of all the papers and 3 23.arbp.385.09.sxw proceedings in connection with the same procedures on payment of costs. The parties who prosecute the above proceeding shall not settle or compromise the same in any manner whatsoever without giving at least two weeks notice of the proposed settlement to the other parties and their advocates and after informing the Arbitrator of the same in writing. 7 The costs of the litigation on behalf of the firm shall be paid from out of the funds of the firm. The parties are at liberty to apply to the Arbitral Tribunal for release of the funds in this regard. 8 I am not inclined to appoint a Court Receiver in respect of properties which are allegedly in the occupation of the Respondents. The Petitioner No.1 has about 22% share in the profits and losses of the firm. In the event of it being found that the Respondents are in illegal occupation of the premises or that they are liable to pay compensation for use thereof whether during the pendency of the arbitration proceedings or otherwise that amount together with the interest thereon can always be adjusted in the final award. Pending the award and for a period of 16 weeks thereafter, the Respondents shall maintain status-quo in respect of the properties in their possession in all respects including as to the use and possession thereof. 9 The Respondents shall furnish particulars of the party who is in occupation of the office and terrace to the Petitioner’s Advocate on or 4 23.arbp.385.09.sxw before 20th October 2010. 10 Flat no.21 and the garage/s is admittedly lying vacant. The Court Receiver, High Court, Bombay is appointed as a Receiver in respect of flat no.21 and the garage/s referred to in the affidavit-in reply. 11 The Court Receiver shall, in the first instance, appoint an agent on leave and licence basis in respect of the flat no.21 and the said garage on usual terms and conditions including as to security and royalty. The parties are at liberty to bid for the agency of the Court Receiver. However, in the event of the parties being appointed as the agents of the Court Receiver, they shall not be liable to furnish security. 12 All the parties shall maintain status-quo in respect of the entire properties in all respects. 13 The parties shall seek appropriate directions from Arbitral Tribunal regarding payment of the statutory dues and investments of any other amounts of the firm. 14 Both the petitions are disposed of accordingly. -