Party to the proceedings
amol
(Querist) 07 June 2014
This query is : Resolved
Hello Sirs I am Advocate Amol Joshi
My question is as under
here was partnership firm --- two partners --- partnership firm --entered into Loan agreement with Abhuday Co Op Bank in 2005 ---the same was signed by one partner ---other partner after few years prosecuted in 2009 and was in jail an released in 2013.
during mid of 2009 one partner who has signed could not pay the EMI and int so bank initiated arbitration proceedings before sole arbitrator u/s 84 of Multi state co op so against the partnership firm their partners and guarantors --- Award was passed ---- then execution application is pending for executing the award since 2010. it is a fact that the other partner who was in jail he was not served with the copy of the notice of proceedings u/s 84 nor he was served with the copy of award so he was deprived from defending the proceedings and he is also undergoing with execution proceedings at present in a Dist Court Thane
now the Question is :-
Can the other partner independently being a person of partnership firm and in view of Sec 19 (2) of the Partnership Act file an application u/s 34 of Arbitration & Con Act and challenge the award on the ground that he was not served with the copy of notice and award and as he do not accept the award
or
Can he record his objections under order 21 Rule 50 (2) and or (3) CPC in execution proceedings saying that that award itself is not binding on him as he was not served with notice and award
please guide how to challenge the aforesaid award or execution by the other partner who was in jail at the time when the award was passed without serving him the copy of notice of proceedings and giving opportunity of defending the arbitration proceeding.
please also mention the case laws if you have in your knowledge. thanks
amol
(Querist) 07 June 2014
the partner was in the Jail though out from the date of arrest in 2009 till grant of bail in Appeal against Conviction.
Experts I know the question is difficult to answer but please reply
Advocate Ravinder
(Expert) 08 June 2014
Any one partner can challenge the award. If the partner who signed is not taking interest to challenge the award, you can challenge the same by explaining the court why you are contesting the award.
T. Kalaiselvan, Advocate
(Expert) 11 June 2014
There is no difficulty in this. Since one of the partners, upon whom the notices were not served by the sole arbitrator can very well challenge the award by filing an application u/s 34 of Arbitration & Con Act along with another application to stall/stay the EP proceedings until this main petition id disposed.
