SMT. PREM LATA AND ANR. versus MIS ISHAR DASS CHAMAN LAL AND ORS .

SMT. PREM LATA AND ANR. versus MIS ISHAR DASS CHAMAN LAL AND ORS .

A suit under Section 20 of the Arbitration Act, 1940 to enforce arbitration clause for disputes relating to dissolution, accounts, or property of an unregistered partnership firm falls within the exception in Section 69(3)(a) Partnership Act and is maintainable.

Parties
Appellant: SMT. Prem Lata; Respondent: Mis Ishar Dass Chaman Lal and Ors.
Jurisdiction
India
Judgment Date
10 January 1995
Procedural Posture
Civil Appeal / Appeal by Special Leave From High Court Revision
Outcome
Appeal allowed
Legal Topics
Maintainability of Suit Under Section 20 Arbitration Act for Reference to Arbitration in Unregistered Partnership, Exceptions Under Section 69(3) Partnership Act
Arbitration Partnership Maintainability of Suit Under Section 20 Arbitration Act for Reference to Arbitration in Unregistered Partnership Exceptions Under Section 69(3) Partnership Act

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Parties

SMT. Prem Lata

Appellant

Mis Ishar Dass Chaman Lal and Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From High Court Revision

Legal Issues

  1. 1 Whether a suit under Section 20 of the Arbitration Act, 1940 for reference to arbitration is maintainable when the partnership is unregistered and the dispute relates to dissolution and account of the firm.

Ratio Decidendi

A suit under Section 20 of the Arbitration Act, 1940 to enforce arbitration clause for disputes relating to dissolution, accounts, or property of an unregistered partnership firm falls within the exception in Section 69(3)(a) Partnership Act and is maintainable.

Court Disposition

Appeal allowed

Orders

  • Trial court directed to refer the dispute to the named arbitrators as per Clause 16 of the partnership deed.
  • Arbitrators to decide the dispute expeditiously, preferably within six months.