V.H. PATEL AND COMPANY AND ORS. versus HIRUBHAI HIMABHAI PATEL AND ORS.

V.H. PATEL AND COMPANY AND ORS. versus HIRUBHAI HIMABHAI PATEL AND ORS.

Since the relationship among partners was so strained that operation of partnership was impossible, and because the Partnership Deed and consent terms permitted reference of all disputes to arbitration, it was permissible for respondent to claim dissolution and for the arbitrator to decide that issue. The High Court rightly remitted the dissolution issue to the arbitrator.

Parties
Petitioner: V.H. Patel and Company and Ors.; Respondent: Hirubhai Himabhai Patel and Ors.
Jurisdiction
India
Judgment Date
18 April 2000
Procedural Posture
Special Leave Petition (civil) / Final Disposal
Outcome
Petition dismissed
Legal Topics
Scope of Reference to Arbitration, Power of Arbitrator to Dissolve Partnership, Dissolution of Partnership for Breach of Agreement and Destruction of Mutual Confidence
Arbitration Partnership Scope of Reference to Arbitration Power of Arbitrator to Dissolve Partnership Dissolution of Partnership for Breach of Agreement and Destruction of Mutual Confidence

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Parties

V.H. Patel and Company and Ors.

Petitioner

Hirubhai Himabhai Patel and Ors.

Respondent

Procedural Posture

Special Leave Petition (civil) / Final Disposal

Legal Issues

  1. 1 Whether the arbitrator has jurisdiction to entertain a counterclaim for dissolution of partnership firm beyond the scope of consent order
  2. 2 Whether conduct destructive of mutual confidence among partners is a ground for dissolution of partnership
  3. 3 Whether the power to dissolve partnership is within the authority of arbitrator where agreement provides for arbitration

Ratio Decidendi

Since the relationship among partners was so strained that operation of partnership was impossible, and because the Partnership Deed and consent terms permitted reference of all disputes to arbitration, it was permissible for respondent to claim dissolution and for the arbitrator to decide that issue. The High Court rightly remitted the dissolution issue to the arbitrator.

Court Disposition

Petition dismissed

Orders

  • High Court's order remitting dissolution issue to arbitration affirmed