Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration Act 1940-Section 20 Partnership Act 1939-Section 69(3 |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration Act, 1940-Section 2(}-Reference to Arbitration provided for in partnership deed of an unregistered Jinn-Suit under S.20 maintainable. Partnership Act, 1939-Section 69(3)-Not an embargo to reference of disputes to arbitration, if such provision present in the partnership deed of an unregistered firm.One ID and his two sons by a partnership deed dated 13.12.65 constituted an unregistered firm. With the death of the eldest son on 6.3.78 the partnership firm stood dissolved. The appellants, the widow and the alleged son of the deceased, called upon the erstwhile partners, the respondents herein, to render the accounts of the firm. The respondents did not render the accounts and the appellants invoked Clause 16 of the Partnership Deed and called upon them to refer the dispute to the named arbitrators. Since the respondents refused to refer the dispute the appellants invoked the jurisdiction of the civil court under Section 20 of the Arbitration Act, 1940.The Trial Court allowed the suit. In revision, the High Court held that S.69(1)&(3) of the Partnership Act, 1939 excluded the application of S.20 of the Arbitration Act and consequently the application under S.20 for reference to arbitration was not maintainable.In appeal to this Court, it was contended that S.69(3) (a) carved out an exception to S.69(1), (2) and main (3). As a result there was no prohibition for the appellants to invoke Clause 16 of the partnership deed to enforce their rights so their application/suit under S.20 of the Arbitration Act was maintainable.The respondents contended that 'to sue' as envisaged in S.69(1) and 4 main (3) included an entitlement to enforce the right created under the partnership deed and since .the partnership firm was unregistered, the rights under the deed, namely reference to arbitration under Clause 16, was not available. The suit under s.20 of the Arbitration Act was therefore not maintainable. |
Judge | N/A |
Neutral Citation | 1995 INSC 21 |
Petitioner | Smt. Prem Lata And Anr. |
Respondent | M/s Ishar Dass Chaman Lal And Ors . |
SCR | [1995] 1 S.C.R. 168 |
Judgement Date | 1995-01-10 |
Case Number | 5491 |
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