JAGDISH CHANDER GUPTA versus KAJARIA TRADERS (INDIA) LTD.

JAGDISH CHANDER GUPTA versus KAJARIA TRADERS (INDIA) LTD.

An application under section 8(2) of the Arbitration Act for appointment of an arbitrator pursuant to an arbitration clause in an unregistered partnership is barred under section 69(3) of the Indian Partnership Act, as such application is a proceeding to enforce a right arising from a contract and 'other proceeding' in section 69(3) receives its full, unrestricted meaning.

Parties
Appellant: Jagdish Chander Gupta; Respondent: Kajaria Traders (India) Ltd.
Jurisdiction
India
Judgment Date
29 April 1964
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated March 22, 1960, of the Bombay High Court in Award No. 18 of 1959
Outcome
Appeal allowed
Legal Topics
Bar on Suits by Unregistered Partnership Under S. 69, Indian Partnership Act, Interpretation of 'other Proceeding' in S. 69(3), Referral to Arbitration Under S. 8 Arbitration Act
Arbitration Partnership Bar on Suits by Unregistered Partnership Under S. 69, Indian Partnership Act Interpretation of 'other Proceeding' in S. 69(3) Referral to Arbitration Under S. 8 Arbitration Act

Case Brief

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Parties

Jagdish Chander Gupta

Appellant

Kajaria Traders (India) Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated March 22, 1960, of the Bombay High Court in Award No. 18 of 1959

Legal Issues

  1. 1 Whether application under s. 8(2) Arbitration Act for appointment of arbitrator is barred by s. 69(3) of the Indian Partnership Act due to non-registration of partnership
  2. 2 Interpretation of 'other proceedings' in s. 69(3), Indian Partnership Act

Ratio Decidendi

An application under section 8(2) of the Arbitration Act for appointment of an arbitrator pursuant to an arbitration clause in an unregistered partnership is barred under section 69(3) of the Indian Partnership Act, as such application is a proceeding to enforce a right arising from a contract and 'other proceeding' in section 69(3) receives its full, unrestricted meaning.

Court Disposition

Appeal allowed

Orders

  • Decision of the Bombay High Court set aside
  • Application under s. 8(2) Arbitration Act dismissed with costs throughout on applicant in High Court