JUGAL KISHORE PRABHATILAL SHARMA AND ORS. versus VIJAYENDRA PRABHATILAL SHARMA AND ANR.

JUGAL KISHORE PRABHATILAL SHARMA AND ORS. versus VIJAYENDRA PRABHATILAL SHARMA AND ANR.

The arbitrator had acted on proper material and reasoned basis for valuation of assets. Specific clauses in the dissolution deed governed apportionment of liabilities. Arbitrator’s findings on accounts and payments could not be interfered with by the Court. Award of pre-reference interest was not justified as per substantive law and deed terms, but interest pendente lite from January 1, 1983 onwards was reasonable. Arithmetical errors in the award should be corrected.

Parties
Appellants: Jugal Kishore Prabhatilal Sharma and Others; Respondents: Vijayendra Prabhatilal Sharma and Another
Jurisdiction
India
Judgment Date
22 October 1992
Procedural Posture
Civil Appeal / Disposal of Interlocutory Applications and Appeal
Outcome
Appeal and applications disposed; award made rule of court as modified.
Legal Topics
Award of Interest, Valuation of Partnership Assets, Interpretation of Dissolution Deed, Arbitrator’s Power and Misconduct, Apportionment of Liabilities, Onus of Proof in Accounts, Correction of Arithmetical Errors
Arbitration Partnership Law Civil Procedure Award of Interest Valuation of Partnership Assets Interpretation of Dissolution Deed Arbitrator’s Power and Misconduct Apportionment of Liabilities +2 more

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Parties

Jugal Kishore Prabhatilal Sharma and Others

Appellants

Vijayendra Prabhatilal Sharma and Another

Respondents

Procedural Posture

Civil Appeal / Disposal of Interlocutory Applications and Appeal

Legal Issues

  1. 1 Whether the arbitrator was justified in valuation of land and assets and interpretation of dissolution deed
  2. 2 Whether the arbitrator properly apportioned liabilities and assessed allegations of falsification of accounts
  3. 3 Whether interest pendente lite and pre-reference interest could be awarded

Ratio Decidendi

The arbitrator had acted on proper material and reasoned basis for valuation of assets. Specific clauses in the dissolution deed governed apportionment of liabilities. Arbitrator’s findings on accounts and payments could not be interfered with by the Court. Award of pre-reference interest was not justified as per substantive law and deed terms, but interest pendente lite from January 1, 1983 onwards was reasonable. Arithmetical errors in the award should be corrected.

Court Disposition

Appeal and applications disposed; award made rule of court as modified.

Orders

  • Awards dated 22.2.91 and 18.7.91 made rule of court, with modifications regarding interest and correction of arithmetical errors.
  • Interest awarded from January 1, 1983 onwards, rate and manner as determined by arbitrator.