Former Supreme Court judge, Justice Deepak Gupta has been appointed as the sole arbitrator in the dispute between L&L Partners and the heirs of its Founding Partner, the late Vijay Sondhi..The order passed by Justice Prateek Jalan stated,"Hon’ble Mr. Justice Deepak Gupta, a former Judge of the Supreme Court of India is appointed as the Arbitrator to adjudicate the disputes between the petitioners and respondent Nos. 1, 4...".After attempts to settle the dispute through mediation failed, the High Court referred the matter to arbitration, on the consent of both parties.In terms of interim measures, the Court said that the 20.8% share of Sondhi in the partnership firm will not be disturbed. The induction of any new equity partners will also be subject to the prior approval of the arbitrator. The firm undertook not to create any third party interest, security interest or any other encumbrance in the immovable properties owned by the firm.Further, the Court recorded,"In the event, any of the existing partners seeks to resign from the partnership firm, they may do so, and the proportion of their share which would have gone to Mr. Sondhi will also be maintained undisturbed. Learned counsel for the respondents states that no other change in the structure or constitution of the respondent No. 6 firm is contemplated at present.".The Court also made it clear that these measures would be subject to any orders passed by the arbitrator. The order stated,"The learned Arbitrator is free to vary, vacate or modify these directions, which are intended only to preserve the position of the parties until the learned Arbitrator has had an opportunity to enter into the reference, and consider the proceedings under Section 17 of the Act.".Sondhi's brother Ajay and sister Sangeeta have demanded that they be inducted into the equity partnership of the firm, and in the meantime, for Sondhi's share to not be diluted by the Partners.It is the Sondhis' case that as per the 2002 partnership deed signed by the Founding Partners, upon the death of one of them, their stake would devolve to their legal heirs.Sondhi, who passed away in January this year, had bequeathed his share in the firm to Ajay and Sangeeta equally. Since the succession took effect from January 28, they claimed that they had a right to take part in the conduct of business of the firm, as per the provisions of the Partnership Act.The Sondhis claimed that Rajiv Luthra had assured them that their rights will be duly honoured, and at their option, they would either be absorbed in the firm as Partners, or be transferred business and clients to the extent of their share.However, they claim that Chandhoke and Sharma, under the guise of amicably resolving the issues, have deliberately delayed the process, as well as the rights and benefits due to them. Despite the passage of more than two months since obtaining assurances from Luthra, the petitioners stated that they have not been given their legitimate legal rights..Vijay Sondhi heirs v L&L Partners: Mediation fails, Delhi High Court refers dispute to arbitration.[Read Order]
