By judgment and order dated 29.11.1997 the District Judge upheld the award and dismissed the above objections.
At this stage it may be numbered that Om Prakash and Jagdish Prasad also objected to para 7 of the award by which Jagdish Prasad was asked to hand over a portion of the residential house in his occupation to Laxmi Narain.
Thereafter, an application was moved by the arbitrators before the District Judge under Section 14 2 of the Arbitration Act 1940 to make the award dated 12.6.1971, rule of the Court.
An objection was filed by Laxmi Narain stating that the award was a nullity as the partners had appointed only two arbitrators by written agreement dated 28.5.1971 and that the two arbitrators had numberauthority to companyopt three additional arbitrators.
They were occupying different portions of a residential house at 31, Dahimandi, Daulatganj, Lashkar, Gwalior.
That the family settlement involving partition as ordered by the arbitrators was beyond the scope of the reference.
Under the award dated 12.6.1971, directions were given on the question of repayment of loan undertaken by Laxmi Narayan on behalf of the firm companytributions to be made by Laxmi Narayan, Jagdish Prasad and Om Prakash towards the said repayment and it further recorded a family settlement involving partition and transfer of immovable properties.
18/98 and cross Appeal No.
Being aggrieved, heirs of Om Prakash filed the present civil appeals before this Court.
The award refers to an oral agreement dated 9.6.1971 between the partners by which they had agreed to addition of three more arbitrators and to enlargement of the scope of reference by which the parties sought settlement of all disputes including dissolution of the firm, settlement of accounts, settlement of assets and liabilities as also settlement of disputes pertaining to the shop of Laxmi Narain and the ancestral house see the recital clause .
It was further submitted that reference was made to the arbitrators only for liquidation of the loans incurred by the firm and that the arbitrators companyld number have enlarged the scope of the reference agreement which was in writing by placing reliance on oral companysent which was also disputed.
By written agreement of even date, the partners appointed two arbitrators, Mattulal and Nathulal for decision on the said dispute.
By impugned judgment, the High Court allowed the appeal filed by the heirs of Laxmi Narain and set aside the award.
2,50,400/ owed by the firm to its creditors.
59/98 respectively.
Being aggrieved, heirs of Laxmi Narain and Jagdish Prasad came to the High Court by way of First Appeal No.
The three partners were members of Hindu Undivided Family HUF .
Laxmi Narain died in 1993.
By the impugned judgment the cross appeal filed by Jagdish Prasad for deletion of Clause 7 was also disposed of and parties were ordered to be relegated to their original position vis a vis the house.
On 12th June, 1971 award was given by five arbitrators.
On 28th May, 1971 dispute arose between the parties in the matter of repayment of loan of Rs.
It carried on business from a shop owned by Laxmi Narayan Bansal located at Topi Bazar, Lashkar, Gwalior.
H. Kapadia, J. A partnership firm, M s Laxmi Fancy Stores had among others Laxmi Narayan Bansal, Om Prakash Bansal, and Jagdish Prasad Bansal as its partners.
