In Brief
In this partnership dispute, the surviving partner of Super Diamond Tools alleged that the other partner had falsified accounts and misappropriated funds over 21 years. An arbitrator found the respondent guilty and awarded ₹53,87,664.40 with interest. The respondent challenged the award claiming it violated public policy. The High Court Division Bench agreed, finding the 21-year backward accounting method unsustainable. The Supreme Court dismissed the appeal, holding that while the accounting method was debatable, the appellant's counter-claim was time-barred under the Limitation Act—the claim was filed over three years after discovery of the alleged fraud, breaching the statutory period.
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