Vivek Slaria vs Neeraj Tyagi
2021 Latest Caselaw 2925 Del

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*     IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                           Date of decision: 26.10.2021

+     ARB.P. 190/2021
      VIVEK SLARIA                                       ..... Petitioner
                         Through      Mr.Yash Mishra, Ms.Srishti Mishra &
                                      Mr.Pronoy Chatterjee, Advs.

                         versus

      NEERAJ TYAGI                                    ..... Respondent
                         Through      Mr.Abrahm C. Mathews & Mr.Vivek,
                                      Advs.

      CORAM:
      HON'BLE MR. JUSTICE SURESH KUMAR KAIT

                         J U D G M E N T (oral)

1. Present petition has been preferred under Section 11(5) of the

Arbitration and Conciliation Act, 1996 seeking appointment of sole

arbitrator to adjudicate the disputes between the parties with regard to the

Partnership Deed dated 30.11.2013.

2. As per the version of petitioner, petitioner and respondent, who are

said to be husband and wife, were equal partners of M/s Greenlatte, a

partnership firm arising out of a partnership deed dated 30.11.2013,

whereunder both the partners have an equal share in the net profit, loss and

all other liabilities of the firm.

3. It is submitted by the petitioner that due to extreme incompatibilities

between petitioner and respondent, respondent has refused to take

responsibility of her 50% share in the liabilities of the firm. The present

dispute between the parties is with regard to non-payment of statutory (GST

and TDS) and third-party dues of the partnership firm which add upto

Rs.71,36,951/- and remain unpaid since January 2020.

4. As per version of petitioner, respondent misused partnership fund in

connivance with Mr.Sinkul Tyagi, her relative, by siphoning off Rs.24 lacs

from partnership fund account to her personal account thereby violating

clause 6 of the Partnership Deed. As a precaution, petitioner sent a letter to

Branch Manager, HDFC Bank on 22.01.2020 requesting them to stop all

debits from partnership account and to only permit debit after mutual

consent of both petitioner and respondent.

5. It is further submitted that petitioner time and again sought

cooperation in paying GST, TDS and third-party dues of the firm which

respondent refused to do. Moreover, respondent also refused to pay her

50% share of the abovesaid dues. Further submitted that due to the non-

cooperation of respondent, the petitioner is suffering everyday and as a

result, despite having sufficient balance in the partnership bank account

amounting to Rs.1,15,80,102/-, has been unable to discharge liabilities of the

firm. Petitioner situation further worsened having received tax notice dated

22.12.2020 for cancellation of GST registration by the Assistant

Commissioner of State Tax. Also, petitioner served notice to the respondent

for payment of outstanding financial governmental liabilities on 12.10.2020

which the respondent denied and ultimately, GST registration was

suspended on account of non-filing of GST returns for a continuous period

of six months.

6. It is pleaded on behalf of the petitioner that vide notice dated

23.10.2021, petitioner invoked arbitration under clause 18 of the Partnership

Deed and appointed Mr.Harsh Jha, Advocate sole arbitrator and invited

respondent to give confirmation to the same. In reply thereof, respondent

vide its communication dated 27.10.2020 did not give her consent for the

appointment of Mr.Harsh Jha, Advocate being the sole arbitrator.

7. During the course of hearing, learned counsel for the parties prayed

this Court to appoint sole arbitrator to adjudicate the disputes between the

parties.

8. Accordingly, Mr. Justice (Retd) V.K. Jain (Mobile: 9650116555) is

appointed sole Arbitrator to adjudicate the dispute between the parties.

9. The arbitration shall be conducted under the Delhi International

Arbitration Centre (DIAC).

10. The fee of the Arbitrator shall be in accordance with the Schedule of

Fees prescribed under the Delhi International Arbitration Centre (DIAC)

(Administrative Cost and Arbitrators Fees) Rules, 2018. The learned

Arbitrator shall ensure compliance of Section 12 of Arbitration and

Conciliation Act, 1996 before commencing the arbitration.

11. With aforesaid directions, the present petition is accordingly disposed

of.

12. A copy of this order be sent to the learned Arbitrator as well as Delhi

International Arbitration Centre (DIAC) for information.

(SURESH KUMAR KAIT) JUDGE OCTOBER 26, 2021 ab