Date:05/04/2006 URL: http://www.thehindu.com/2006/04/05/stories/2006040502561500.htm

National

Arbitrator appointed to resolve Singhania family row

Legal Correspondent

`Complete arbitration within six months'

Variava could seek extension if necessary, says Supreme Court

Bench says litigating in court not in the family's interest

NEW DELHI: The Supreme Court on Tuesday appointed Justice S.N. Variava, former judge of the apex court, as an arbitrator for resolving the partnership dispute among the three branches of industrialist Singhania's family. A Bench of Justice H. K. Sema and Justice A. R. Lakshmanan, while allowing an appeal filed by Hari Shankar Singhania and others, requested Mr. Justice Variava to complete the arbitration proceedings within six months. It, however, said that Mr. Justice Variava could seek an extension if necessary. The appeal is directed against a Bombay High Court judgment in June 2004 dismissing Mr. Hari Shankar Singhania's plea and upholding a single judge's order that an arbitrator could not be appointed, as it was time-barred.

Different treatment

The Bench held that a family settlement had to be treated differently from any other formal commercial settlement as such settlement would ensure peace and goodwill among the family members.

It said: "Technicalities of limitation etc. should not be put at risk of implementation of a settlement drawn by a family, which is essential for maintaining peace and harmony in a family."

Writing the judgment, Mr. Justice Lakshmanan said that it was time members of the Singhania family sank their differences and started living in peace.

The Bench said that everything was fine with the family till 1987, when the partnership firm was dissolved to ensure that the family members got equal share of the property but trouble started thereafter. Holding that the arbitration suit filed by the appellants was well within the time, the Bench appointed Mr. Justice Variava as arbitration to resolve the dispute.