{"id":230122,"date":"2007-10-11T00:00:00","date_gmt":"2007-10-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-g-sabu-vs-c-s-satheesan-on-11-october-2007"},"modified":"2017-03-15T04:16:55","modified_gmt":"2017-03-14T22:46:55","slug":"k-g-sabu-vs-c-s-satheesan-on-11-october-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-g-sabu-vs-c-s-satheesan-on-11-october-2007","title":{"rendered":"K.G.Sabu vs C.S.Satheesan on 11 October, 2007"},"content":{"rendered":"
Kerala High Court<\/div>\n
K.G.Sabu vs C.S.Satheesan on 11 October, 2007<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nAR No. 22 of 2007()\n\n\n1. K.G.SABU, S\/O.LATE K.V.GOPINATH,\n                      ...  Petitioner\n2. SHEENA.K., D\/O.SASIDHARAN, KUDILINGAL\n3. K.G.SHAJI, S\/O.LATE K.V.GOPINATH,\n4. MRS.BEETHA SHAJI, D\/O.CHANDRA MOHAN,\n\n                        Vs\n\n\n\n1. C.S.SATHEESAN,\n                       ...       Respondent\n\n2. K.E.SUMA, W\/O.C.S.SATHEESAN,\n\n                For Petitioner  :SRI.MOHAN JACOB GEORGE\n\n                For Respondent  :SRI.RAJEEV NAMBISAN\n\nThe Hon'ble MR. Justice PIUS C.KURIAKOSE\n\n Dated :11\/10\/2007\n\n O R D E R\n                       PIUS C. KURIAKOSE, J.\n                   ----------------------------------\n                         A.R. NO.22 of 2007\n                   ----------------------------------\n            Dated this the 11th day of October , 2007\n\n                               O R D E R\n<\/pre>\n
      On the basis of Annexures A1 and A2, the petitioners submit that<\/p>\n
they and the respondents were carrying on business of Cable<\/p>\n
Operators, T.V. Net Work Operators and other allied activities under<\/p>\n
the name and style of ” Globe Vision”. In pursuance to Annexures A1<\/p>\n
and A2,    they entered into business agreement with M\/s. Asianet<\/p>\n
Satelite Communication (P) Ltd and with       KSEB for the purpose of<\/p>\n
cable T.V. Distribution to various households under the Electrical Sub<\/p>\n
Division, Aluva. Annexures A3 and A4 agreements are relied on. It is<\/p>\n
stated that during January 2006, disputes arose between the<\/p>\n
petitioners and the respondents and it is claimed that the majority<\/p>\n
partners resolved to expel respondents 1 and 2 from the partnership<\/p>\n
vide resolution dated 31.5.2006.       The first petitioner, who was<\/p>\n
managing partner, instituted suit O.S. No.211\/2006 before the Munsiff<\/p>\n
Court, Aluva seeking a decree of injunction against respondents 1 and<\/p>\n
2. In that suit, Annexures A4(a) counter affidavit was filed by the<\/p>\n
respondents contending that the suit is not maintainable and that the<\/p>\n
A.R.No.22\/2007                      2<\/span><\/p>\n
disputes can be resolved only through the arbitration. The petitioners<\/p>\n
point out that clause 26 of Annexure A2 is an arbitration agreement<\/p>\n
between the parties and that disputes between the parties are to be<\/p>\n
settled by arbitration through the arbitrator appointed unanimously by<\/p>\n
the partners. Since the request of the petitioners to refer the disputes<\/p>\n
for arbitration to be conducted by a retired District Judge was not<\/p>\n
agreeable to the respondents, Annexure A5 notice            followed by<\/p>\n
Annexure A6 correction notice were issued to the respondents.        To<\/p>\n
Annexures A5 and A6, the         respondents sent Annexure A7 reply<\/p>\n
contending that the decision of the petitioners to expel respondents 1<\/p>\n
and 2 is not legally sustainable for want of quorum to convene<\/p>\n
meeting and that the appointment of the first petitioner as the<\/p>\n
Managing Partner is also unsustainable.     On receiving Annexure A7,<\/p>\n
the petitioners sent Annexure A8 reiterating their stand to which the<\/p>\n
respondents sent Annexure A9 in which it is stated that they have not<\/p>\n
been informed about the actual subject matter of the disputes or about<\/p>\n
the allegations    against them.      The petitioners submit that the<\/p>\n
respondents are deliberately evading compliance with the demand of<\/p>\n
the   petitioners to settle the disputes by arbitration proceedings. In<\/p>\n
paragraph 10 of the Arbitration Request, they have enumerated the<\/p>\n
disputes.   Annexure A10 is also relied on to show the present stage<\/p>\n
A.R.No.22\/2007                      3<\/span><\/p>\n
of the disputes between the parties.         It is then stated in the<\/p>\n
Arbitration Request that the first respondent maliciously got a<\/p>\n
fraudulent partnership to be created with one Sri.P.S.Sreekumar and<\/p>\n
got   the same registered .      On coming to know about that, the<\/p>\n
petitioners filed Annexure A11 suit before the Sub Court, Paravoor for<\/p>\n
declaration and for permanent prohibitory injunction against the<\/p>\n
respondents.      The said suit was decreed on 4.1.2007       and it is<\/p>\n
claimed that the said suit does not relate to Annexure A1 and A2 and<\/p>\n
was only for declaration relating to the sham partnership firm created<\/p>\n
between the first respondent and Sri.Sreekumar for the purpose of<\/p>\n
defeating the smooth functioning of the petitioners’ firm covered by<\/p>\n
Annexures A1 and A2.       The Arbitration Request on the above facts is<\/p>\n
filed on the basis that the appointment procedure contemplated by the<\/p>\n
agreement has failed and hence the petitioners are entitled to invoke<\/p>\n
the statutory appointment procedure under Section 11 (5) of the<\/p>\n
Arbitration & conciliation Act.\n<\/p>\n
      2.   A detailed objection has been filed by the respondents<\/p>\n
denying the allegations      in the   Arbitration Request.    But, the<\/p>\n
execution of Annexures A1 and A2 and the clauses contained therein<\/p>\n
are not disputed and the existence of arbitration clause therein is not<\/p>\n
disputed.   It is contended that the request is not maintainable since<\/p>\n
A.R.No.22\/2007                       4<\/span><\/p>\n
the partnership firm is an unregistered one and the arbitration request<\/p>\n
itself will be hit by Section 69 (3) of the Indian Partnership Act and<\/p>\n
will have to be rejected. It is also contended that, having already filed<\/p>\n
suit before the Sub court, Paravur(O.S.No.383\/2006) i.e. Annexure<\/p>\n
A11, the petitioners are not entitled to invoke the arbitration clause in<\/p>\n
Annexures A1 and A2.\n<\/p>\n
       3. I have heard the submissions of Sri. Mohan Jacob George,<\/p>\n
the learned counsel for the petitioners and Sri. Sajan Puthenveetil<\/p>\n
representing Sri.Rajiv Nambisan the learned counsel for              the<\/p>\n
respondents. Placing very strong reliance on the judgment of the<\/p>\n
Supreme Court in Jagdish Chandra Gupta v. Kajaria Traders<\/a><\/p>\n
( India) Ltd. ( AIR 1964 Supreme Court 1882),           it was submitted<\/p>\n
on behalf of the respondents that the Arbitration Request is not<\/p>\n
maintainable since the partnership evidenced by Annexures A1 and A2<\/p>\n
is not a registered one.       It   was also argued on behalf of the<\/p>\n
respondents that the very filing of Annexure A11 will amounts to<\/p>\n
waiver of arbitration clause in Annexure A1 and A2 and for that reason<\/p>\n
also, the present request under Section 11 (5)        of the Act is not<\/p>\n
maintainable.\n<\/p>\n
       4.    Sri.Mohan Jacob George, the learned counsel for the<\/p>\n
petitioners will very ably resist the submissions of the learned counsel<\/p>\n
A.R.No.22\/2007                      5<\/span><\/p>\n
for the respondents.      The learned counsel would refer to various<\/p>\n
judicial precedents governing Section 11, 5 and 6 of the Arbitration &<\/p>\n
Conciliation Act.\n<\/p>\n
       5. I am unable to agree that the judgment of the Supreme<\/p>\n
Court in Jagdish Chandra Gupta’s case (supra) is an authority for the<\/p>\n
proposition that   non registration of the partnership    evidenced by<\/p>\n
Annexures A1 and A2 will be fatal to the petitioners’ request for<\/p>\n
appointment of an independent and impartial arbitrator.       I am also<\/p>\n
convinced that the scope of Annexure A11 suit is different from the<\/p>\n
scope of the arbitration proceedings sought for by the petitioners.<\/p>\n
       6.   Admittedly,    disputes arisen between the parties and<\/p>\n
Annexures A1 and A2 contains arbitration clause. The agreed<\/p>\n
appointment procedure regarding appointment of arbitrator has failed.<\/p>\n
Having regard to the statutory provisions and the judicial precedents<\/p>\n
governing the point, I do not find any reason as to why this Arbitration<\/p>\n
Request should not be granted.      Therefore, This Arbitration Request<\/p>\n
will stand allowed. It is open to the respondents to contend before the<\/p>\n
arbitrator that the disputes are not arbitrable. The arbitrator will pass<\/p>\n
award on that question also apart from adjudicating the claims set<\/p>\n
out in the Arbitration Request and Annexure A10 by the petitioners<\/p>\n
A.R.No.22\/2007                     6<\/span><\/p>\n
and counter claims, if any which should be raised by the respondents.<\/p>\n
According to me, no prejudice will be caused to either of the parties by<\/p>\n
appointing the retired District Judge    known for his learning and<\/p>\n
integrity. Therefore, I appoint Sri.K.Ramachandran, Advocate of this<\/p>\n
court and retired District Judge    as  Arbitrator for settling all the<\/p>\n
issues between the parties. Arbitrator will enter on reference and<\/p>\n
pass award at his earliest.\n<\/p>\n<\/p>\n
                               PIUS C. KURIAKOSE,<\/p>\n
                                        JUDGE.\n<\/p>\n
dpk<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court K.G.Sabu vs C.S.Satheesan on 11 October, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM AR No. 22 of 2007() 1. K.G.SABU, S\/O.LATE K.V.GOPINATH, … Petitioner 2. SHEENA.K., D\/O.SASIDHARAN, KUDILINGAL 3. K.G.SHAJI, S\/O.LATE K.V.GOPINATH, 4. MRS.BEETHA SHAJI, D\/O.CHANDRA MOHAN, Vs 1. C.S.SATHEESAN, … Respondent 2. K.E.SUMA, W\/O.C.S.SATHEESAN, For Petitioner :SRI.MOHAN JACOB GEORGE […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-230122","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nK.G.Sabu vs C.S.Satheesan on 11 October, 2007 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/k-g-sabu-vs-c-s-satheesan-on-11-october-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"K.G.Sabu vs C.S.Satheesan on 11 October, 2007 - 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