RAHUL VERMA & ORS. versus RAMPAT LAL VERMA & ORS.

RAHUL VERMA & ORS. versus RAMPAT LAL VERMA & ORS.

The arbitration agreement in a partnership deed survives the death of a partner and the legal heirs/legal representatives of the deceased partner, though non-signatories, can be bound by and can invoke the arbitration clause; additionally, the right to sue for rendition of accounts survives to the legal representatives, hence the High Court correctly referred the dispute to arbitration and there was no error of law in its judgment.

Parties
Petitioner: Rahul Verma & Ors.; Respondent: Rampat Lal Verma & Ors.
Jurisdiction
India
Judgment Date
21 February 2025
Procedural Posture
Special Leave Petition (c) No. 4330 of 2025 / Judgment on Special Leave Petition to the Supreme Court; Petition Dismissed
Outcome
Special Leave Petition dismissed.
Legal Topics
Legal Heirs of a Deceased Partner, Non Signatories to Partnership Deed, Arbitration Agreement, Right to Sue for Rendition of Accounts, Invocation of Arbitration Clause
Arbitration Partnership Law Legal Heirs of a Deceased Partner Non Signatories to Partnership Deed Arbitration Agreement Right to Sue for Rendition of Accounts Invocation of Arbitration Clause

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Parties

Rahul Verma & Ors.

Petitioner

Rampat Lal Verma & Ors.

Respondent

Procedural Posture

Special Leave Petition (c) No. 4330 of 2025 / Judgment on Special Leave Petition to the Supreme Court; Petition Dismissed

Legal Issues

  1. 1 Whether the legal heirs of a deceased partner in a partnership firm, being non-signatories to the partnership deed and in the absence of their explicit consent, can still be bound by the arbitration agreement prescribed therein?
  2. 2 Whether the right to sue for the rendition of accounts survives to the legal heirs of the deceased partner, entitling them to invoke the arbitration clause in the partnership deed?

Ratio Decidendi

The arbitration agreement in a partnership deed survives the death of a partner and the legal heirs/legal representatives of the deceased partner, though non-signatories, can be bound by and can invoke the arbitration clause; additionally, the right to sue for rendition of accounts survives to the legal representatives, hence the High Court correctly referred the dispute to arbitration and there was no error of law in its judgment.

Court Disposition

Special Leave Petition dismissed.

Orders

  • Special Leave Petition dismissed.
  • Parties shall bear their own costs.