Arb P No. 16/2025 Page 1 of 3 HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU CJ Court Case No. : Arb P No. 16/2025 Date of Pronouncement : 14.11.2025 Uploaded on: 18.11.2025 Tara Chand …..Appellant/Petitioner(s) Through: Mr. Sachin Gupta, Advocate Vs Swarno Devi .…. Respondent(s) Through: Mr. Amit Gupta, Advocate Coram: HON’BLE THE CHIEF JUSTICE ORDER (ORAL) 1. The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator. 2. The petitioner, being a sole proprietor, was running a stone crusher Unit registered vide No. 070051100682 under the name and style of M/s Satguru Stone Crusher, located at Dungdevpur, Tehsil Marheen, District Kathua. The said stone crusher was originally established in the year 2014 and subsequently came to be acquired by the petitioner in 2019. It is submitted that in early January, 2022, the respondent expressed her willingness to join the business as partner. Subsequently, the parties executed a Partnership Deed on January 07, 2022 before the Sub-Registrar, Hiranagar. It is submitted that the terms of the Partnership Deed stipulated, inter alia, that both partners would contribute capital in equal proportion, i.e., 50% each and that profits as well as losses of the business would be shared equally. It was also agreed that any additional capital requirement would be mutually discussed and contributed proportionately by both partners. It is further submitted that although the partnership commenced its business activities in accordance with the terms of the Partnership Deed, the respondent failed to honour her contractual Sr.No. 19 Arb P No. 16/2025 Page 2 of 3 obligations with respect of the financial contributions. The petitioner claims to have invested a substantial sum of Rs.5.50 crores towards the functioning and expansion of the stone crusher Unit, whereas the respondent’s actual contribution remained limited to Rs.5,99,952.80 only. It is submitted that while the partnership firm was operational, a third-party entity by the name of M/S Grander Suppliers approached the partners in August, 2022, to take over the partnership Unit on rent for execution of a six lane highway expansion project. Upon mutual consent, both the partners executed a memorandum of understanding dated August 24, 2022 with M/S Grander Suppliers and in terms thereof the partnership Unit along with its machinery, excavators, dumpers and infrastructure was rented out to the said third party for a period of 24 months, commencing from August 01, 2022 till July 30, 2024, for a monthly rent of Rs.22,00,000/-.It is urged that M/S Grander Suppliers was liable to pay a total rent of Rs.5,28,00,000/- against which only an amount of Rs.1,74,31,687/- was paid constraining the respondent to approach the Court of Principal District Judge, Jammu, under Section 9 of the Arbitration and Conciliation Act. The Court vide its order dated August 4, 2023, declined to restrain the lessee from continuing its operations, however, directed the lessee-M/s Grander Supplier Pvt. Ltd. to deposit an amount of Rs.70 lakhs before the Court to be kept in a fixed deposit, which was consequently deposited. It is urged that against the said firm M/S Grander Suppliers, rent amounting to Rs.3,53,68,313/- is still pending. 3. It is urged that respondent has failed to fulfill her contractual/ partnership obligations in so far as the capital investment is concerned as against an amount of Rs.5,50,00,000/- invested by the petitioner, the respondent has invested only an amount of Rs.5,99,952.80/-. It is stated that out of the rent received by the partnership firm, the petitioner paid an amount of Rs.20,00,000/- to the respondent on account of her investment to the tune of Rs. 5,99,952/- in the partnership firm. Further, it is submitted that since the respondent failed to honour the partnership terms, he, therefore, dissolved the partnership firm by virtue of notice dated May 12, 2023 and disputes in relation to capital contribution, settlement of accounts, outstanding rent and other partnership related issues have arisen between the parties. The petitioner Arb P No. 16/2025 Page 3 of 3 has submitted that respondent, vide notice dated March 13, 2024, asked the petitioner for appointment of an arbitrator and in reply to the said notice, the petitioner, vide notice dated April 15, 2024 proposed three names to be appointed as arbitrators, however, the respondent failed to appoint an arbitrator in the matter, therefore, the petitioner, invoking Clause 16 of the Partnership Deed dated January 7, 2022, approaches this Court under Section 11 of the Arbitration and Conciliation Act. Hence, the petition at hand. 4. As per office report dated April 03, 2025, respondent was duly served. But no response was filed on her behalf all this while. 5. Heard learned counsel for the parties. 6. The existence of the arbitration clause, as aforesaid, and its invocation by the petitioner vide its reply dated April 15, 2024 to the notice dated March 13, 2024 is not disputed. 7. Thus, in the given circumstances, learned counsel for the respondent, as always, fairly submits that let an arbitrator be appointed. But since the claim that is sought to be made by the petitioner is vehemently disputed/denied, it is submitted that respondent be granted liberty to raise all possible pleas/objections before the arbitral tribunal/arbitrator in this regard. 8. Accordingly, in the wake of the position sketched out above and in terms of the statements made by learned counsel for the parties, the petition is allowed. And, with the consent of learned counsel for the parties, Mr. Sunit Gupta, Retired District and Sessions Judge, (Mobile No. 9419162400) is appointed as the sole arbitrator. Who shall proceed with the matter in accordance with the provisions of the Act. And to make an award within the time provided in the Act itself after charging the prescribed fee along with incidental expenses to be shared by the parties. 9. Registry to send a copy of this order to the learned Arbitrator. Jammu : 14.11.2025 Pawan Chopra/Secy (ARUN PALLI) CHIEF JUSTICE Pawan Chopra 2025.11.17 20:37 I attest to the accuracy and integrity of this document