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IN THE HIGH COURT OF DELHI AT NEW DELHI
O.M.P.(I) (COMM.) 152/2017
ATUL DUA & ANR.
..... Petitioners
Through: Mr. Adtiya Gupta, proxy counsel.
versus
MALA SAHNI SETH & ORS.
..... Respondents
Through: Mr. Akshay Makhija, proxy counsel.
CORAM: JUSTICE S.MURALIDHAR

ORDER
%
31.03.2017
IA No. 4110/2017 (for exemption)
1. Allowed, subject to all just exceptions.
OMP (I) (COMM) 152/2017
2. Since a strike is being observed by the lawyers today, the parties appeared
in person.

3. Notice. Notice is accepted by Ms. Mala Sahni Seth (Respondent No.1) on
her behalf and on behalf of Mr. Sumer Dev Seth (Respondent No.2).

4. An urgency is expressed on behalf of the Petitioner regarding payments
towards expenses and salaries of the associates and staff of the erstwhile
firm, M/s. Seth Dua & Associates. After the unfortunate demise of Mr. Sunil
Seth on 5th February 2017, the partnership stood dissolved. In terms of the
partnership deed dated 1st June, 1998 along with its subsequent amendments,
OMP (I) (Comm.) 152 of 2017

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 the erstwhile firm is to be reconstituted as a sole proprietary concern of Mr.
Atul Dua. However, since the bank with which the firm had its account is
not permitting withdrawals in the absence of consent of the legal
representatives (LRs) of late Mr. Sunil Seth, on account of the disputes that
have arisen between them and Mr. Dua, the Court's intervention is sought by
Mr. Dua (as Petitioner No.1) in this petition under Section 9 of the
Arbitration and Conciliation Act 1996 ('Act'). It requires to be noticed that
the Partnership Deed contains an arbitration clause.
5. In terms of Clauses 25.1, 25.2 and 25.3 of the partnership deed as
amended from time to time, the accounts of the erstwhile firm have to be
settled as of the date of dissolution i.e. on the death of Mr. Seth. Pending
that exercise, which is bound to take some time, certain arrangements have
to be worked out that working of the proprietory concern is not hampered
while at the same time the interests of the LRs representatives of late Mr.
Seth are protected.
6. Accordingly, the Court directs as under:
(i) A sum of Rs. 1.2 crores from the aggregate amount standing in the
credit balance of the accounts of the erstwhile firm of M/s. Seth Dua
and Associates with the Standard Chartered Bank (SCB), Greater
Kailash-I (GK I), New Delhi (which incidentally is impleaded as
Respondent No.3), and SCB Mumbai will be forthwith kept in a
separate fixed deposit (FD) in the name of Mr. Atul Dua initially for a
period of three months.

OMP (I) (Comm.) 152 of 2017

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 (ii) The Branch Managers of SCB GK I Branch and SCB Mumbai are
directed to ensure that the order at (i) above is complied with. A copy
of the FD receipt (FDR) in the name of Mr. Atul Dua will be
furnished soon thereafter by Mr Atul Dua to the LRs of Mr. Sunil
Seth.
(iii) The said FDR will not be cancelled or foreclosed prematurely
without the express orders of the Court.
(iv) It has been explained on behalf of Mr Atul Dua that the
immediate payments that have to be made towards expenses and
salaries for the month of February 2017 are approximately Rs. 75.55
lakhs. It is stated that a similar sum will be required to be expended
for March 2017. It is accordingly directed that Mr Atul Dua can spend
from the two accounts of the firm i.e. A/c No. 52105010568 with
SCB, GK-I, New Delhi and A/c No. 22205525152 with SCB
Mumbai, between now and the next date of hearing, the above sum of
Rs. 75.55 lakhs and a further sum not exceeding Rs. 75.55 lakhs on
account of expenses (including statutory dues) and salaries. For
making these payments, and for credit of the amounts into the said
accounts, Mr. Atul Dua will be permitted to operate the abovesaid
accounts subject to maintaining proper and complete accounts, which
will be produced at the appropriate stage on orders of the court.
(v) On the strength of this order, the Branch Managers of SCB GK I
Branch and the SCB Mumbai Branch with which the erstwhile firm of
M/s. Seth Dua & Associates has accounts, will permit Mr. Atul Dua
OMP (I) (Comm.) 152 of 2017

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 to operate the accounts subject to the above terms and subject to
further orders of the Court.
(vi) It is undertaken on behalf of Mr. Atul Dua that he will maintain
the complete accounts and records for all receipts and payments made
from the above accounts and that he will not without prior permission
of the Court open or operate any other accounts of the proprietory
concern. All the bills/vouchers and receipts for all the payment
received into and payments made from these accounts will be
preserved and will be furnished to the LRs of Mr. Seth upon demand.
In any event, the complete updated statements of both the bank
accounts as of 15th April 2017 be produced in the Court on the next
date of hearing.
7. The Court is of the view that in the meanwhile the parties should make an
attempt to resolve their disputes through mediation. The Court directs that
the parties shall appear before Dr. Dipankar Gupta, Senior Advocate
(Mob.No.9810001918), who shall act as the Mediator, on dates and time
convenient to him, first within the next seven days and thereafter on such
dates as the learned Mediator may consider necessary till the next date of
hearing in this Court. The parties are directed to contact Mr Gupta forthwith
and fix a mutually convenient date and time within the next week. There
will be only two representatives on either side participating in the mediation.
Dr. Gupta will fix his own terms and communicate them to the parties. Mr.
Gupta is requested to send a report of the mediation before the next date of
hearing.
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 8. List on 24th April 2017. Order be given dasti to the parties under the
signature of the Court Master. A certified copy of this order be also
delivered to Dr. Dipankar Gupta, Senior Advocate through a special
messenger.

S. MURALIDHAR, J
MARCH 31, 2017
Rm

OMP (I) (Comm.) 152 of 2017

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