# Ram Taulan Yadav & Anr v. Himanshu Kesarwani & Ors

- **Citation:** (2024) 11 ILRA 413
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2024-11-08
- **Bench:** Manoj Kumar Gupta
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/ram-taulan-yadav-anr-v-himanshu-kesarwani-ors-51021
- **Pages:** 9

## Headnote

414 INDIAN LAW REPORTS ALLAHABAD SERIES
Civil law- Arbitration and Conciliation Act,
1996 - Sections 11(6 ) & 11(8) -
Appointment of arbitrator - Partnership
dispute - Whether arbitration clause in
prior
agreements
binds
non-signatory
inducted under supplementary deed -
supplementary
deed
executed
in
continuation of earlier partnership deeds
- Arbitration clause in earlier deeds binds
non-signatory partner - Partnership Act,
1932 - Section 69(3) - Unregistered firm
-
Bar
on
other
proceedings
-
Applicability
to
arbitration
-arbitral
proceedings not hit by Section 69(3 ).

Stamp Act, 1899 - Sections 33 & 35 -
Arbitration
agreement
inadequately
stamped
-
Effect
on
Section
11
application - Held, non-stamping not a
ground to reject request for appointment
- Defect curable and to be decided by
arbitral tribunal.
Non-signatory to arbitration agreement -
Whether bound by prior agreement -
Supplementary deed silent on arbitration
-
Held,
supplementary
agreement
incorporated earlier partnership terms -
Issue whether non-signatory is bound by
arbitration clause to be decided by arbitral
tribunal.

Multiple
agreements
forming
single
contractual relationship - Interpretation
- Held, supplementary deed executed to
incorporate change in partners - Prior
terms including arbitration clause remain
binding - Arbitration maintainable even
in absence of express clause in latest deed
- Constitution of arbitral tribunal directed.
(Paras 7,8,9,14, 15, 16, and 17)

HELD:

The
first
issue
which,
thus,
falls
for
consideration is whether the partnership deed
being unregistered, the dispute between the
partners could be referred to the arbitral
tribunal or the bar contained in Section 69(3) of
the Partnership Act would operate. The issue is
no more res integra. In Umesh Goel Vs
Himachal Pradesh Cooperative Group Housing
Society Limited, the Supreme Court has held
that the expression "other proceedings" in
Section 69(3) of the Partnership Act does not
cover arbitral proceedings as well as arbitral
award. The same view has been taken in Shiv
Developers
through
its
partner
Sunilbhai
Sombhai Ajmeri Vs Aksharay Developers & ors..
Accordingly, the contention is devoid of any
merit. (Para 7)

The issue as to whether the agreements could
not be enforced because of any deficiency in
stamp duty is also squarely covered by the
judgement of Supreme Court in Interplay
Between
Arbitration
Agreements
under
Arbitration and Conciliation Act, 1996 and Stamp
Act, 1899, In Re. (Para 8)

Thus, in case, there is any deficiency in stamp
duty an objection to the said effect can be taken
before the arbitral tribunal but the same would
not
detain
the
Court
from
entertaining
application for constitution of an arbitral
tribunal. (Para 9)

Above view stands fortified by some of the
decisions
noted
hereinafter.
A
similar
controversy was considered by Calcutta High
Court in Juggilal Kamlapat v. N.V. Internationale
CredietEn-Handels Vereeninging 'Rotterdam'. It
was held that the arbitration clause contained in
the earlier deeds would continue to govern the
rights and obligations of the parties. (Para 14)

Similar view has been taken by Gujarat High
Court in Creative Infocity Ltd. Vs Gujarat
Informatics Ltd. In the said case, a concession
agreement was executed between Gujarat
Informatics Limited, a Government owned
company and a private joint venture company
(appellant) for private sector participation in
infrastructure
projects.
It
contemplated
execution of master lease in favour of the
appellant in furtherance of the concession
agreement. The concession agreement provided
for arbitration clause but it was missing in the
master lease agreement. The issue before the
court
was
whether
arbitration
clause
in
concession agreement would survive after
execution of master lease agreement. The entire
objective of the scheme was examined and it
was concluded that the master lease agreement
was entered into between parties in pursuance
of concession agreement. Accord

## Text

11 All. Ram Taulan Yadav & Anr. Vs. Himanshu Kesarwani & Ors.
413
the time being in force or in any instrument
having effect by virtue of any law other
than this Act."

16. The Apex Court in the case of
Ram Nath vs. State of Uttar Pradesh and
others; (2024) 3 SCC 502 also considered
this issue and held that provision of Act,
2006 will prevail over the provision of any
other Act. Para 26, 27 and 28 of Ram
Nath's case (supra) are quoted as below;

"26.
Thus,
there
are
very
exhaustive
substantive
and
procedural
provisions in FSSA for dealing with offences
concerning unsafe food.

27. In this context, we must
consider the effect of Section 89 FSSA.
Section 89 reads thus:

"89. Overriding effect of this Act
over all other food related laws. The
provisions of this Act shall have effect
notwithstanding
anything
inconsistent
therewith contained in any other law for the
time being in force or in any instrument
having effect of virtue of any law other than
this Act."

The title of the Section indeed
indicates that the intention is to give an
overriding effect to FSSA over all "foodrelated laws". However, in the main section,
there is no such restriction confined to "foodrelated laws", and it is provided that
provisions of FSSA shall have effect
notwithstanding
anything
inconsistent
therewith contained in any other law for the
time being in force. So, the section indicates
that an overriding effect is given to the
provisions of FSSA over any other law.

28. The settled law is that if the
main section is unambiguous, the aid of the
title of the section or its marginal note cannot
be taken to interpret the same. Only if it is
ambiguous, the title of the section or the
marginal note can be looked into to
understand the intention of the legislature."

17. From the above observation in the
judgement of Ram Nath's case (supra), it is
clear that the overriding effect of the FSS Act
is not confined to only food-related laws but
also other Laws including Cr.P.C.

18. So far as the contention of counsel
for the applicant that being sub-standard
sample, the applicant can be prosecuted under
Section 51 not under Section 59, this issue
can be raised at the time of framing of charge
and same cannot be a ground for quashing the
proceeding.

19. In view of the above, this Court
does not find any illegality in the impugned
order as well as impugned proceeding.
Accordingly, the present application is
dismissed.
----------
(2024) 11 ILRA 413
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 08.11.2024

BEFORE

THE HON'BLE MANOJ KUMAR GUPTA, J.

Arbitration & Conciliation Application U/S 11(4)
No. 95 of 2023

Ram Taulan Yadav & Anr. ...Applicants
Versus
Himanshu Kesarwani & Ors.
 ...Respondents

Counsel for the Applicants:
Prabhav Srivastava, Rishabh Srivastava,
Ujjawal Satsangi

Counsel for the Respondents:
Abhay Kumar Singh
414 INDIAN LAW REPORTS ALLAHABAD SERIES
Civil law- Arbitration and Conciliation Act,
1996 - Sections 11(6 ) & 11(8) -
Appointment of arbitrator - Partnership
dispute - Whether arbitration clause in
prior
agreements
binds
non-signatory
inducted under supplementary deed -
supplementary
deed
executed
in
continuation of earlier partnership deeds
- Arbitration clause in earlier deeds binds
non-signatory partner - Partnership Act,
1932 - Section 69(3) - Unregistered firm
-
Bar
on
other
proceedings
-
Applicability
to
arbitration
-arbitral
proceedings not hit by Section 69(3 ).

Stamp Act, 1899 - Sections 33 & 35 -
Arbitration
agreement
inadequately
stamped
-
Effect
on
Section
11
application - Held, non-stamping not a
ground to reject request for appointment
- Defect curable and to be decided by
arbitral tribunal.
Non-signatory to arbitration agreement -
Whether bound by prior agreement -
Supplementary deed silent on arbitration
-
Held,
supplementary
agreement
incorporated earlier partnership terms -
Issue whether non-signatory is bound by
arbitration clause to be decided by arbitral
tribunal.

Multiple
agreements
forming
single
contractual relationship - Interpretation
- Held, supplementary deed executed to
incorporate change in partners - Prior
terms including arbitration clause remain
binding - Arbitration maintainable even
in absence of express clause in latest deed
- Constitution of arbitral tribunal directed.
(Paras 7,8,9,14, 15, 16, and 17)

HELD:

The
first
issue
which,
thus,
falls
for
consideration is whether the partnership deed
being unregistered, the dispute between the
partners could be referred to the arbitral
tribunal or the bar contained in Section 69(3) of
the Partnership Act would operate. The issue is
no more res integra. In Umesh Goel Vs
Himachal Pradesh Cooperative Group Housing
Society Limited, the Supreme Court has held
that the expression "other proceedings" in
Section 69(3) of the Partnership Act does not
cover arbitral proceedings as well as arbitral
award. The same view has been taken in Shiv
Developers
through
its
partner
Sunilbhai
Sombhai Ajmeri Vs Aksharay Developers & ors..
Accordingly, the contention is devoid of any
merit. (Para 7)

The issue as to whether the agreements could
not be enforced because of any deficiency in
stamp duty is also squarely covered by the
judgement of Supreme Court in Interplay
Between
Arbitration
Agreements
under
Arbitration and Conciliation Act, 1996 and Stamp
Act, 1899, In Re. (Para 8)

Thus, in case, there is any deficiency in stamp
duty an objection to the said effect can be taken
before the arbitral tribunal but the same would
not
detain
the
Court
from
entertaining
application for constitution of an arbitral
tribunal. (Para 9)

Above view stands fortified by some of the
decisions
noted
hereinafter.
A
similar
controversy was considered by Calcutta High
Court in Juggilal Kamlapat v. N.V. Internationale
CredietEn-Handels Vereeninging 'Rotterdam'. It
was held that the arbitration clause contained in
the earlier deeds would continue to govern the
rights and obligations of the parties. (Para 14)

Similar view has been taken by Gujarat High
Court in Creative Infocity Ltd. Vs Gujarat
Informatics Ltd. In the said case, a concession
agreement was executed between Gujarat
Informatics Limited, a Government owned
company and a private joint venture company
(appellant) for private sector participation in
infrastructure
projects.
It
contemplated
execution of master lease in favour of the
appellant in furtherance of the concession
agreement. The concession agreement provided
for arbitration clause but it was missing in the
master lease agreement. The issue before the
court
was
whether
arbitration
clause
in
concession agreement would survive after
execution of master lease agreement. The entire
objective of the scheme was examined and it
was concluded that the master lease agreement
was entered into between parties in pursuance
of concession agreement. Accordingly, the
arbitration clause in the original concession
11 All. Ram Taulan Yadav & Anr. Vs. Himanshu Kesarwani & Ors.
415
agreement was held to govern the jural
relationship between the parties. (Para 15)

The Constitution Bench in Cox and Kings Ltd.
(supra) examined the issue as to whether a
non-signatory to an agreement can be held
bound by it. It is held that the said issue may
require consideration of evidence on factual
aspects and ordinarily it should be left to the
tribunal to decide the same. At the referral
stage, a referral court should not enter into
the said issue. Following the law laid down in
the Constitution Bench judgement in Cox and
Kings Ltd. (supra), the Supreme Court while
deciding Arbitration Petition No.38 of 2020,
constituted the arbitral tribunal but left it
open to the parties to raise the said issue
before it. Accordingly, I am of the view that
the said issue which involves appreciation of
evidence should be left to the wisdom of the
arbitral
tribunal
for
being
decided
in
accordance with law. (Para 17)

In the result, I am of the opinion that the
arbitration clause in the partnership agreement
dated 2 March 2020 read with supplementary
partnership agreement dated 20 February 2021
would merit constitution of an arbitral tribunal.
This would be without prejudice to the pleas
and contentions of the parties. (Para 18)

Constitution
of
Arbitration
Tribunal
directed. (E-14)

List of Cases cited:

1. Interplay Between Arbitration Agreements
under Arbitration & Conciliation Act, 1996 &
Stamp Act, 1899, In Re; (2024) 6 SCC 1

2. All India Power Engineer Federation Vs Sasan
Power Ltd.; 2017 (1) SCC 487

3. Cox & Kings Ltd. Vs SAP India Pvt. Ltd. &
another; (2024) 4 SCC 1

4. Arbitration Petition No. 38 of 2020 decided on
9 September 2024

5.
Umesh
Goel
Vs
Himachal
Pradesh
Cooperative Group Housing Society Limited;
(2016) 11 SCC 313

6. Shiv Developers through its partner Sunilbhai
Sombhai Ajmeri Vs Aksharay Developers & ors.;
(2022) 13 SCC 772

7. N.N. Global Mercantile (P) Ltd. Vs Indo
Unique Flame Ltd., (2023) 7 SCC 1 : (2023) 3
SCC (Civ) 564

8. SMS Tea ESt.s (P) Ltd. Vs Chandmari Tea Co.
(P) Ltd., (2011) 14 SCC 66 : (2012) 4 SCC (Civ)
777

9. Garware Wall Ropes Ltd. Vs Coastal Marine
Constructions & Engg. Ltd., (2019) 9 SCC 209 :
(2019) 4 SCC (Civ) 324

10. Juggilal Kamlapat Vs N.V. Internationale
CredietEn-Handels
Vereeninging
'Rotterdam';
AIR 1955 Cal 65

11. Creative Infocity Ltd. Vs Gujarat Informatics
Ltd.; MANU/GJ/0516/2009

(Delivered by Hon'ble Manoj Kumar
Gupta, J.)

1.
As
per
office
report
dated
26.07.2023, opposite party No. 1 has been
duly served by registered post but no one
has appeared on his behalf. In respect of
opposite party No. 2, the notice sent to him
by registered post has returned with the
endorsement of refusal. Thus, service on
the said respondent is also sufficient.
However, no one has appeared on his
behalf also.

2. Heard Shri Ujjawal Satsangi and
Shri Rishabh Srivastava along with Shri
Prabhav Srivastava, learned counsel for the
applicants and Shri Abhay Kumar Singh,
learned counsel for opposite party No. 3.

3. The instant application under
Section
11
of
the
Arbitration
and
Conciliation Act, 1996 has been filed by
the applicants invoking the power of this
Court to constitute an arbitral tribunal in
416 INDIAN LAW REPORTS ALLAHABAD SERIES
respect of the disputes arising between the
parties out of partnership agreements dated
29 August 2016, 2 March 2020 and 20
February 2021.

4. The facts in brief are that a
partnership agreement was executed on 29
August 2016 between applicant no. 1 (Ram
Taulan Yadav) and one Sheela Yadav for
doing business in the name of M/s Autar &
Associates. As per Clause 14 of the said
agreement all disputes and differences
arising between the parties would be
referred to mutually acceptable arbitration.
On 2 March 2020, a retirement-cumpartnership deed was executed in respect of
the partnership business. Thereby, Smt.
Sheela Yadav retired from the partnership
firm while Smt. Madhu Yadav (Applicant
No. 2), Ram Milan Yadav, Himanshu
Kesarwani (Opposite party No. 1) Saurabh
Kesarwani (Opposite party No. 2) were
introduced as new partners. The share of
each of them is mentioned in Clause-1 of
the partnership deed. Clause 17 of the said
agreement also contains an arbitration
clause for referring all disputes and
differences
to
mutually
acceptable
arbitration. On 20 February 2021, a
supplementary deed of partnership was
executed whereby Ram Milan Yadav
retired from the partnership firm with effect
from 31 March 2021 and Radhey Shyam
Mishra (opposite party No. 3) was inducted
as a new partner. It seems that thereafter a
memorandum of understanding (MoU)
dated 09.09.2022 was executed between the
partners of the firm and thereunder, the
parties agreed that the properties given by
the applicants in mortgage to secure the
loan taken by the firm from the financial
institutions
would
be
released
and
thereafter, the applicants would retire from
the partnership firm. In compliance of the
said arrangement, four properties of the
applicants were redeemed from mortgage,
however,
five
properties
remained
mortgaged. This gave rise to disputes and
differences
between
the
parties,
the
resolution of which has been sought
through
arbitration.
The
applicants
suggested name of three arbitrators vide its
notice dated 15 April 2023. Opposite party
no. 1 agreed to the name of Mr. Justice
Vipin Sinha, Former Judge of this Court
whereas opposite parties No. 2 & 3 did not
respond to the notice.

5. Opposite party No. 3 has filed
counter affidavit and has opposed the
appointment of arbitral tribunal. The main
grounds to oppose the constitution of
arbitral tribunal are (1) the partnership firm
was unregistered and partnership deed was
not properly stamped, therefore, bar of
Section 69 of the Partnership Act, 1932 and
Sections 33 and 35 of the Stamp Act, 1899
would apply; (2) there was no arbitration
clause in the supplementary partnership
agreement
dated
20
February
2021
whereby opposite party No. 3 was inducted
as partner in the partnership firm for the
first time. The arbitration clauses in the
previous agreements are not binding on
opposite party No. 3 as he was not
signatory to these agreements.

6. Learned counsel for the applicants,
on the other hand, submits that bar under
Section 69 of the Partnership Act does not
apply to arbitration proceedings. He further
submits that in case, there is any deficiency
in stamp duty, the same can be agitated
before the arbitral tribunal but on this
ground the prayer for appointment of
arbitrator cannot be rejected. In support of
his contention, he places reliance on a
recent Constitution Bench judgment in
Interplay
Between
Arbitration
Agreements
under
Arbitration
and
11 All. Ram Taulan Yadav & Anr. Vs. Himanshu Kesarwani & Ors.
417
Conciliation Act, 1996 and Stamp Act,
1899, In Re. It is further submitted by him
that the supplementary agreement whereby
opposite party no. 3 was inducted as
partner in the partnership firm was in
continuation of the earlier two partnership
agreements.
Therefore,
all
the
three
agreements have to be read together. In
support of his contention, he places reliance
on the judgment of the Supreme Court in
All India Power Engineer Federation v.
Sasan Power Ltd.. It is further submitted
that the question as to whether opposite
party No. 3 was signatory and a consenting
party to the arbitration clause should be left
for being decided by the arbitral tribunal as
laid down by Supreme Court in Cox &
Kings Ltd. v. SAP India Pvt. Ltd. &
another and in Arbitration Petition No.
38 of 2020 decided on 9 September 2024.

7. The first issue which, thus, falls for
consideration is whether the partnership
deed
being
unregistered,
the
dispute
between the partners could be referred to
the arbitral tribunal or the bar contained in
Section 69(3) of the Partnership Act would
operate. The issue is no more res integra.
In Umesh Goel vs. Himachal Pradesh
Cooperative Group Housing Society
Limited, the Supreme Court has held that
the expression "other proceedings" in
Section 69(3) of the Partnership Act does
not cover arbitral proceedings as well as
arbitral award. The same view has been
taken in Shiv Developers through its
partner Sunilbhai Sombhai Ajmeri vs.
Aksharay
Developers
and
Others.
Accordingly, the contention is devoid of
any merit.

8. The issue as to whether the
agreements could not be enforced because
of any deficiency in stamp duty is also
squarely covered by the judgement of
Supreme Court in Interplay Between
Arbitration
Agreements
under
Arbitration and Conciliation Act, 1996
and Stamp Act, 1899, In Re. In the said
Constitution
Bench
judgement,
the
Supreme Court in the conclusions recorded
in paragraph 235 has observed as follows:

"235. The conclusions reached in
this judgment are summarised below:

235.1. Agreements which are not
stamped or are inadequately stamped are
inadmissible in evidence under Section 35
of the Stamp Act. Such agreements are not
rendered void or void ab initio or
unenforceable;

235.2.
Non-stamping
or
inadequate stamping is a curable defect;

235.3.
An
objection
as
to
stamping does not fall for determination
under Sections 8 or 11 of the Arbitration
Act. The Court concerned must examine
whether the arbitration agreement prima
facie exists;

235.4. Any objections in relation
to the stamping of the agreement fall within
the ambit of the Arbitral Tribunal; and

235.5. The decision in N.N.
Global (2) and SMS Tea Estates are
overruled. Paras 22 and 29 of Garware
Wall Ropes are overruled to that extent."

9. Thus, in case, there is any
deficiency in stamp duty an objection to the
said effect can be taken before the arbitral
tribunal but the same would not detain the
Court from entertaining application for
constitution of an arbitral tribunal.

10. The second and the main issue is
whether the arbitration clauses in two
previous agreements between the earlier
partners is enforceable as against opposite
party no.3, who was inducted into the
partnership firm in pursuance of the
418 INDIAN LAW REPORTS ALLAHABAD SERIES
supplementary partnership agreement dated
20 February, 2021 and which admittedly
does not contain any arbitration clause. As
noted above, the partnership firm was
constituted in pursuance of the partnership
agreement dated 29 August, 2016. It was
between Ram Taulan Yadav (applicant
no.1) and Sheela Yadav. The share of the
partners was 65% and 35% respectively.
On 2 March, 2020, a retirement-cumpartnership deed was executed whereby
Sheela Yadav retired from the partnership
firm and four new partners were inducted
namely, Madhu Yadav, Ram Milan Yadav,
Himanshu
Kesarwani
and
Saurabh
Kesarwani.
The
said
partnership
agreement, as noted above, specifically
refers to the previous partnership deed
dated 1 March, 2020 and also contains an
arbitration clause in same terms. The
supplementary partnership deed dated 20
February, 2021 whereby opposite party
no.3 was inducted as a partner and Ram
Milan Yadav retired from the partnership
firm since 31 March, 2021 also refers to the
previous partnership deed dated 2 March,
2020. It also specifically mentions that the
business
will
be
continued
by
the
reconstituted firm in the same name i.e.
M/s Autar & Associates.

11. Some of the crucial clauses of the
preamble to the supplementary partnership
deed dated 20 February, 2021 are as
follows:

"As they are planning to expand
their business they have introduced new
partners to the above firm namely, Sri
Radhey Shyam Mishra and one of the
partners Sri Ram Milan Yadav has decided
as per his own will to retire from the
partnership.

In case of death of introduced
partner i.e. Shri Radhey Shyam Mishra, his
legal successors Mr. Anil Mishra (Aadhar
Card No. 7858 9014 5303) S/o Sri Radhey
Shyam Mishra R/o 89/76, Mahaviran Lane
Mutthiganj, Allahabad and Mr. Rahul
Mishra (Aadhaar Card No. 7553 1490
1256) S/o Sri Radhey Shyam Mishra R/o
89/76,
Mahaviran
Lane
Mutthiganj,
Allahabad will receive all the rights of
partnership deed.

AND WHEREAS to avoid any
disputes or misunderstanding in future, the
parties have agreed to certain terms and
conditions and it is desirable to reduce the
amended terms and conditions governing
the said partnership to this deed of
partnership into writing:"

(emphasis supplied)

12. A perusal of the aforesaid clauses
reveals that supplementary partnership
deed was executed in continuation of the
earlier partnership deed. It specifically
mentions that the same was executed so as
to reduce to writing the amended terms and
conditions governing the said partnership.
Clause 1 of the supplementary partnership
deed specifies the contribution of each
partner and Clause 2, their shares which is
equal to their contribution. The manner in
which the profits and losses were to be
shared is mentioned in Clause 3. The
manner in which the bank accounts were to
be operated by the reconstituted firm is
mentioned in Clauses 4 and 5. It is
pertinent to note that various other matter
dealt with in the previous deed relating to
interest
and
remuneration,
books
of
accounts, partners dealings, terms of
partnership, disputes and differences have
not been dealt with in the supplementary
partnership deed. It is evidently for the
reason that these clauses in the previous
deed would continue to bind the parties. It
is
only
the
terms
which
required
11 All. Ram Taulan Yadav & Anr. Vs. Himanshu Kesarwani & Ors.
419
amendment as a result of reconstitution of
the firm which were mentioned in the
supplementary
partnership
deed.
The
intention of the parties that their legal
relationship in respect of other matters
would continue to be governed by the
previous partnership deed is also borne out
from the preamble of the supplementary
partnership deed, wherein it is specifically
mentioned
that
the
supplementary
partnership deed was being executed to
have a record of the amended terms and
conditions of the partnership deed.

13. It is noteworthy that memorandum
of understanding executed between the
parties and to which opposite party No. 3 is
also a signatory, also refers to the original
partnership deed dated 29.08.2016, and
amended deeds dated 02.03.2020 and
20.02.2021. Prima facie, it evinces that the
subsequent deeds were executed to reduce
to writing the change in constitution of the
firm while the firm name and other legal
obligations not specifically altered by
subsequent deeds remain the same.

14. Above view stands fortified by
some of the decisions noted hereinafter. A
similar controversy was considered by
Calcutta High Court in Juggilal Kamlapat
v.
N.V.
Internationale
Crediet-EnHandels Vereeninging 'Rotterdam'. It
was held that the arbitration clause
contained in the earlier deeds would
continue
to
govern
the
rights
and
obligations of the parties. The relevant
extract is as follows:

"The effect of the alterations or
modifications is that there is a new
arrangement; in the language of Viscount
Haldane in Morris v. Baron & Co. (1)
(1918 Appeal Cases, 1 at 17), "a new
contract containing as an entirety the old
terms together with and as modified by the
new
terms
incorporated."
The
modifications are read into and become
part and parcel of the original contract. The
original terms also continue to be part of
the contract and are not rescinded and/or
superseded except in so far as they are
inconsistent with the modifications. Those
of the original terms which cannot make
sense when read with the alterations must
be rejected. In my view the arbitration
clause in this case is in no way inconsistent
with the subsequent modifications and
continues to subsist." [para 15]"

15. Similar view has been taken by
Gujarat High Court in Creative Infocity
Ltd. vs. Gujarat Informatics Ltd. In the
said case, a concession agreement was
executed between Gujarat Informatics
Limited, a Government owned company
and a private joint venture company
(appellant) for private sector participation
in infrastructure projects. It contemplated
execution of master lease in favour of the
appellant in furtherance of the concession
agreement. The concession agreement
provided for arbitration clause but it was
missing in the master lease agreement. The
issue before the court was whether
arbitration clause in concession agreement
would survive after execution of master
lease agreement. The entire objective of the
scheme
was
examined
and
it
was
concluded that the master lease agreement
was entered into between parties in
pursuance
of
concession
agreement.
Accordingly, the arbitration clause in the
original concession agreement was held to
govern the jural relationship between the
parties. The relevant observations in this
behalf are as follows:

"7. As stated above, the Master
Lease Agreement was entered into between
420 INDIAN LAW REPORTS ALLAHABAD SERIES
the defendant and the plaintiff and 116
acres of the land came to be leased to be
plaintiff as per Concession Agreement.
Therefore, it can be said that the Master
Lease Agreement is in furtherance of
Concession Agreement and the parties were
to
act
as
provided
in
Concession
Agreement as well as in Master Lease
Agreement. Therefore, it can be said that
the Concession Agreement can be said to
be the main agreement, and therefore, as
such both the agreements, Concession
Agreement and Master Lease Agreement
are required to be read together and cannot
be read in isolation, as sought to be
contended on behalf of the plaintiff. As
stated
hereinabove,
the
Concession
Agreement contemplated as one of its
Schedule Master Lease Agreement. It
appears
that
thereafter
dispute
arose
between the plaintiff and the defendant
with respect to various breaches by the
plaintiff, and therefore, the defendant
issued Preliminary Notice with respect to
the
Concession
Agreement
and
a
termination notice in respect to the Master
Lease Agreement providing an opportunity
to the plaintiff to cure and remedies the
breaches within 60 days. Thereafter, as the
defendant (G.I.L.) was satisfied with the
cause of issuance of the notices were
largely unresolved, despite the lapse of
more than 15 months, the defendant issued
the notice of termination of Concession
Agreement
and
the
Master
Lease
Agreement vide Termination Notices dated
12-8-2008. The said termination notices
were challenged by the plaintiff before this
Court by way of Special Civil Application
No. 10840 of 2008 which came to be
withdrawn by the plaintiff. It is to be noted
at this stage that in Special Civil
Application No. 10840 of 2008, it was
specifically contended on behalf of the
plaintiff that the Concession Agreement
takes part and does not stand terminated
upon execution of the Master Lease
Agreement and it was also specifically
pleaded while challenging the termination
notices
in
the
said
Special
Civil
Application that the dispute was required to
be resolved through arbitration as provided
under Clause 24 of the Concession
Agreement and a grievance was made that
the
defendant
had
not
proceeded
thereunder. It is also to be noted that in
Para 33(a) in the said Special Civil
Application No. 10840 of 2008 even the
plaintiff had prayed for writ, direction and/
or order commanding the respondent
herein-original defendant to annul the
termination notices dated 12-8-2008 and to
hold
that
the
aforesaid
Concession
Agreement
and
the
Master
Lease
Agreement continue to operate and hold the
field.
Even
considering
various
correspondences between the plaintiff and
the defendant i.e. documents which are
produced at Exh. 39/1 to 39/9, all
throughout the case of the plaintiff is that
both
the
agreements,
Concession
Agreement and Master Lease Agreement
exist and in fact even the plaintiff has
admitted the shelter of the Arbitration
Clause provided in Concession Agreement.
Therefore, the contention on behalf of the
plaintiff that on execution of the Master
Lease Agreement, Concession Agreement
does not exist and/or has come to an end
cannot be accepted."

16. Undoubtedly, all the parties,
except opposite party No. 3 has signed the
previous agreement dated 2 March 2020.
Prima facie, opposite party No.3, though
not signatory to the said agreement, had
consented to its terms and conditions to the
extent
not
altered
or
amended
by
subsequent supplementary partnership deed
dated
20.02.2021.
11 All. Padam Singhee Vs. Directorate of Enforcement
421

17. The Constitution Bench in Cox
and Kings Ltd. (supra) examined the issue
as to whether a non-signatory to an
agreement can be held bound by it. It is
held that the said issue may require
consideration of evidence on factual
aspects and ordinarily it should be left to
the tribunal to decide the same. At the
referral stage, a referral court should not
enter into the said issue. Following the law
laid down in the Constitution Bench
judgement in Cox and Kings Ltd. (supra),
the
Supreme
Court
while
deciding
Arbitration
Petition
No.38
of
2020,
constituted the arbitral tribunal but left it
open to the parties to raise the said issue
before it. Accordingly, I am of the view
that
the
said
issue
which
involves
appreciation of evidence should be left to
the wisdom of the arbitral tribunal for being
decided in accordance with law.

18. In the result, I am of the opinion
that the arbitration clause in the partnership
agreement dated 2 March 2020 read with
supplementary partnership agreement dated
20 February 2021 would merit constitution
of an arbitral tribunal. This would be
without
prejudice
to
the
pleas
and
contentions of the parties.

19. The court proposes the name of
Mr. Justice Vipin Sinha, Former Judge of
this Court R/o 10, N.K. Mukherji Road,
behind Rajapur Roadways Workshop,
Civil
Lines,
Prayagraj
(Mob.
No.
9415309091) as arbitrator to decide the
disputes between the parties. The fees
shall be as provided under the Fourth
Schedule
to
the
Arbitration
and
Conciliation Act, 1996.

20. Let the office seek consent and
obtain disclosures as contemplated under
Section 11(8) of the Act.

21. The instant application will be put
up for further orders after receipt of
consent/disclosures from the proposed
arbitrator in the month of December, 2024.
----------
(2024) 11 ILRA 421
APPELLATE JURISDICTION
CRIMINAL SIDE
DATED: ALLAHABAD 14.11.2024

BEFORE

THE HON'BLE SAMIT GOPAL, J.

Criminal Misc. Bail Application No. 32236 of
2024

Padam Singhee ...Applicant
Versus
Directorate of Enforcement
 ...Opposite Party

Counsel for the Applicant:
Ram M. Kaushik

Counsel for the Opposite Party:
Jitendra Prasad Mishra, Pawan Kumar
Srivastava

Criminal law- Criminal Procedure Code,
1973 - Section 439 - Bail application-
Prevention of Money Laundering Act, 2002
- Sections 3, 4 & 45 - Bail - Prolonged
incarceration - Delay in trial -Trial of
predicate
offence
yet
to
begin
-
Cognizance taken in PMLA case without
charge sheet in predicate offence -
existence of predicate offence is sine qua
non for trial under PMLA - Delay in trial
infringes fundamental right under Article
21 - PMLA - Section 45 - Twin
conditions - Not absolute - Can be
relaxed in cases of undue delay and where
accused is already on bail in predicate
offence-Bail granted. (Paras 5,6,8 and 9)

HELD:
After having heard learned counsels for the
parties and perusing the records, it is evident
that- (1) The applicant is in custody in