RAVI PRAKASH GOEL versus CHANDRA PRAKASH GOEL AND ANR.

RAVI PRAKASH GOEL versus CHANDRA PRAKASH GOEL AND ANR.

The legal representative of a deceased partner is entitled to invoke the arbitration clause in the Partnership Deed for disputes which arose during the lifetime of the deceased, and to seek appointment of arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. The arbitration agreement survives death, and the right to sue and claim is enforceable by the legal representative.

Parties
Appellant: Ravi Prakash Goel; Respondent: Chandra Prakash Goel; Respondent: Rakesh Aggarwal
Jurisdiction
India
Judgment Date
21 March 2007
Procedural Posture
Civil Appeal / Appeal From Order of High Court (dismissal of Application for Appointment of Arbitrator)
Outcome
Appeal allowed
Legal Topics
Appointment of Arbitrator, Rendition of Accounts, Survival of Arbitration Agreement on Death, Right of Legal Heir
Arbitration Partnership Appointment of Arbitrator Rendition of Accounts Survival of Arbitration Agreement on Death Right of Legal Heir

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Parties

Ravi Prakash Goel

Appellant

Chandra Prakash Goel

Respondent

Rakesh Aggarwal

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of High Court (dismissal of Application for Appointment of Arbitrator)

Legal Issues

  1. 1 Whether the legal representative of a deceased partner can invoke arbitration clause under the Partnership Deed
  2. 2 Whether arbitration can be commenced by heirs after the death of a partner, particularly where the dispute arose during the lifetime of the partner
  3. 3 Whether under Section 46 read with Section 48 of the Indian Partnership Act, 1932 and Section 40 of the Arbitration and Conciliation Act, 1996, legal representative has a right to appointment of arbitrator

Ratio Decidendi

The legal representative of a deceased partner is entitled to invoke the arbitration clause in the Partnership Deed for disputes which arose during the lifetime of the deceased, and to seek appointment of arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. The arbitration agreement survives death, and the right to sue and claim is enforceable by the legal representative.

Court Disposition

Appeal allowed

Orders

  • Application for appointment of arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 granted.
  • No order as to costs.