Court Dismisses Challenge to Arbitral Tribunal's Decision on Dissolution of Saras Developers and Financial Entitlements
Mumbai, April 2, 2026 - The Bombay High Court, under Justice Somasekhar Sundaresan, has upheld an arbitral award related to the dissolution of the partnership firm, Saras Developers. The court dismissed the challenge posed by Shamshul Ishrar Khan against the arbitral tribunal's decision that awarded Alka Chandewar an 80% share in the dissolved partnership, amounting to Rs. 7.39 crores, alongside interest.
This legal battle stemmed from a contentious dissolution of Saras Developers, a firm involved in construction and land development. Alka Chandewar, a significant partner with an 80% share, claimed her rights were undermined through allegedly forged partnership deeds that purportedly diluted her stake. The arbitral tribunal had found these deeds to be invalid and upheld Alka's partnership interest until the firm's dissolution.
Khan, challenging the arbitral award, argued that Alka's claims were barred by limitation and that the quantification of her share was incorrect. However, the court found no merit in these contentions, affirming the tribunal's reliance on sales turnover and rejecting the claims of limitation. The court noted that the tribunal had reasonably assessed Alka's entitlements based on sales turnover and adjusted costs, despite Khan's non-cooperation in the proceedings.
The court also addressed a contempt petition against Khan for violating interim orders of the arbitral tribunal, including the unauthorized transfer of flats. Justice Sundaresan observed gross defiance of tribunal orders and granted Khan an opportunity to purge the contempt by depositing the awarded amount within six weeks, warning of potential criminal contempt charges if compliance is not met.
Bottom Line:
Arbitration - Dissolution of partnership firm - Validity of arbitral award challenged under Section 34 of the Arbitration and Conciliation Act, 1996 - Findings of arbitral tribunal upheld - Computation of partner's share based on sales turnover reasonable - Claims of limitation and ignoring vital evidence rejected.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 17, 34
Shamshul Ishrar Khan v. Alka Chandewar, (Bombay) : Law Finder Doc id # 2876788
