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2025 DAILYLAW 323 (JK)

FOZIYA HABEEB v. MUDASIR AHMAD KHUROO

Arb P/44/2025 · 2026-02-20

body2025

Judgment text

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Sr. No.05 IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR (Through Virtual Mode) Arb P No.44/2025 Foziya Habeeb …Petitioner. Through: Mr. Sajid Ahmad Bhat, Advocate. Vs. Mudasir Ahmad Khuroo ….Respondent(s) Through: Mr. Syed Abid Ahmad, Advocate. CORAM: HON’BLE THE CHIEF JUSTICE O R D E R 20.02.2026 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 carrying business of Services Industries and other allied items under the name and style of M/s ETN Services, situate at 148-A, Umer Abad, Sector-B Peer Bagh Srinagar, Kashmir. In order to run the partnership business, the parties have executed a partnership deed dated 19th July, 2018 and agreed to share the profits and losses of the firm equally. It is submitted that the partnership business of the parties was operational since 2004. And it is alleged that respondent taking undue advantage of being a working a managing partner of the firm indulged in acts of financial and managerial harassment and misconduct over the years. It is further alleged that the respondent has illegally withheld the profits earned by the firm and despite repeated requests denied the petitioner access to the books of accounts. And when the respondent failed to provide the details of accounts of the firm to the petitioner, the petitioner served a legal notice dated 16th July, 2025 upon the respondent requesting for doing the needful in the matter otherwise the petitioner would be constrained to invoke clause 14 of the partnership agreement which provides that in case of any dispute between the parties with regard to the partnership concern, the same shall be referred to an arbitrator. It is urged that notice dated 16th July, 2025 was duly served upon the respondent on 22.07.2025, however, the respondent failed to respond to the legal notice, leaving the petitioner 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 petitioner 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 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. 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. Muzaffar Hussain Attar, Retired Judge High Court of Jammu & Kashmir and Ladakh,(Mob. No.9419000940) 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 20.02.2026 Abdul Qayoom, Secy.