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2025 DAILYLAW 12681 (JK)

FAREEDA WANI AND ORS. v. OSMAN KHURSHEED

Arb P/39/2025 · 2025-12-12

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

Sr. No.01 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR (Through Virtual Mode) Arb P No.39/2025 Fareeda Wani and others. …Petitioner. Through: Mr. Showkat Ali Khan, Advocate. Vs. Osman Khursheed ….Respondent(s) Through: Mr. Aushaq Hussain Shah, Advocate. CORAM: HON’BLE THE CHIEF JUSTICE O R D E R 12.12.2025 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 parties to the petition are partners of a firm run under the name and style of M/s A R Wani’s Poshal Mahal with its principal place of business at Residency Road, Srinagar, Kashmir. Subsequently, the business is stated to have been changed and presently the parties are conducting the business of sale and purchase of mobile phones of all kinds. It is submitted that in terms of Clause 4 of the reconstituted partnership deed dated 12th November, 2018, the respondent was appointed as managing partner of the partnership business with exclusive power to run the partnership business. It is submitted that since the accounts of the partnership business are being managed by the respondent and he is paying an amount of Rs.30,000/- each to petitioners 1 and 2 monthly, however, the petitioner no.3 is receiving a sum of Rs.20,000/- from June/July 2023. It is submitted that the partnership business is earning approximately a profit of Rs.3 lakh per month. Accordingly, a request is stated to have been made to the respondent for settlement of the accounts which the respondent failed to do and the respondent is not even allowing the petitioners 1 and 2 to have access to the accounts of the partnership firm resulting in dispute between the parties. It is alleged that the respondent is conducting his personal business of sale and purchase of mobile phones in the subject shop without reflecting the same in the account books of the partnership firm. It is further submitted that right from 2018, the petitioners have no knowledge about the income and profits of the partnership business and instead of depositing the sales of the partnership business in the partnership account, the respondent is depositing the same in his personal account maintained with HDFC Bank Kakasarai, Karannagar, with a purpose to divest the petitioners from the profits of the partnership firm. It is further alleged that respondent is in the process of creating third party interest in the property of the firm and a month back, the respondent categorically refused to settle the accounts. 3. It is further stated that the original partnership deed as also the reconstituted partnership deed provides a dispute redressal mechanism by appointment of an arbitrator. Accordingly, a legal notice dated 19.08.2025 was served upon the respondent on 25.08.2025, requesting him to nominate and appoint an arbitrator for resolution of the dispute. However, the respondent has failed to respond the same, leaving the petitioners with no option but to approach this Court by filing the petition at hand. 3. Pursuant to the notice issued by this Court, the respondent though caused appearance but no reply/ response has been filed on his behalf. 4. The existence of the arbitration clause, as aforesaid, and its invocation by the petitioners is not disputed. 5. 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 petitioners 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. 6. Accordingly, in the wake of the position sketched out above and in terms of the statements made by the learned counsel for the parties, the petition is allowed. And, with consent of learned counsel for the parties, Mr. Tasaduq Hussain Khawja, Sr. Advocate, High Court of Jammu & Kashmir and Ladakh, 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. The respondent is at liberty to raise all the objections as regards the subject matter before the learned Arbitrator. 7. Registry to send a copy of this order to the learned arbitrator. (ARUN PALLI) CHIEF JUSTICE Jammu 12.12.2025 Abdul Qayoom, Secy. Abdul Qayoom Lone I attest to the accuracy and authenticity of this document 15.12.2025 06:45