Bombay High Court: Arbitration Ordered in Family Partnership Dispute

Quick Summary: Aruna Nilesh Shah is in a legal battle with Inter Globe Services over her late father's share in the business. The court has decided to send the case to arbitration to settle the disagreement over a "mutually agreed amount."

The Background: Family Dispute Over Partnership

Aruna Nilesh Shah asked the court to help resolve arguments related to a partnership agreement from 1988. Her father, Mulchand Anantji Shah, was a partner in Inter Globe Services until he passed away in 2013. Aruna is now in a legal fight with her family and other partners over his share.

The Consent Terms: A Temporary Settlement

In 2022, Aruna and her family reached a temporary settlement known as the Consent Terms. Aruna was supposed to receive Rs. 3.6 crores from her brother Shailesh, settling claims against her mother and siblings. However, arguments with Inter Globe over her father's share were not settled.

The "Mutually Agreed Amount": The Core Issue

Aruna and Inter Globe disagree on what they call the "mutually agreed amount" that Inter Globe owes her. Aruna says this amount is Rs. 11.11 crores, but Inter Globe disagrees, leading to more legal issues.

"The subject matter of the dispute and differences is what the firm has to pay on account of its deceased partner."

Court's Decision: Arbitration to the Rescue

Judge Somasekhar Sundaresan decided that these arguments should be resolved through arbitration. Justice (Retd.) K. R. Shriram has been chosen as the only arbitrator to settle this matter. The arbitration will focus on deciding the actual amount owed to Aruna.

What's Next: Arbitration Proceedings

The court's order requires both sides to present their case before the arbitrator. They need to provide evidence and arguments to determine the rightful share Aruna should receive from her father's partnership in Inter Globe Services.

Summary of Verdict

The court has chosen arbitration as the method to resolve the financial disagreement between Aruna and Inter Globe. This decision is intended to bring clarity and resolution to a complicated family and financial dispute.

"Nothing contained in this order is an expression of an opinion on merits of the matter or the relative strength of the parties."

This legal journey highlights the challenges of family partnerships and the importance of clear agreements in business dealings.