Matter Relating To Partnership Act & Partnership Deed Where Third-Party Rights Are Involved Cannot Be Referred To Arbitration: Madhya Pradesh HC
1 day, 20 hours ago

Matter Relating To Partnership Act & Partnership Deed Where Third-Party Rights Are Involved Cannot Be Referred To Arbitration: Madhya Pradesh HC

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The Madhya Pradesh High Court Bench of Justice Anand Pathak held that when matter relates to Partnership Act and partnership deed and third-party rights are also involved then it cannot be referred to arbitration. Even if any dispute exists under the Indian Partnership Act, 1932, appropriate remedy would be to approach Civil Court rather than appointment of Arbitrator because it would be beyond the domain of Arbitrator. So, the contention of the respondent appears to be correct because the applicant cannot seek prayer for physical share in the property of partnership firm without praying for retirement from the firm or for dissolution, in that condition only entitlement of a partner upon severance of status of the partnership firm would be of money equivalent to the value of his share therein. Thereafter, the court held that when matter relates to the Partnership Act and partnership deed and third-party rights are also involved then it cannot be referred to arbitration.

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History of this topic

Substantive Objections On Validity Or Existence Of Arbitration Agreement Can Be Adjudicated By Tribunal U/S 16 Of Act: Bombay HC
5 days ago

Substantive Objections On Validity Or Existence Of Arbitration Agreement Can Be Adjudicated By Tribunal U/S 16 Of Act: Bombay HC

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The Bombay High Court bench of Justice Somasekhar Sundaresan has held that substantive objections concerning the validity and existence of an arbitration agreement can be adjudicated by the Arbitral Tribunal and not by the court under section 11 of the Arbitration Act. In doing so, the Arbitral Tribunal may also rule on any objections with respect to the existence or …

Arbitrator Empowered To Pass Order For Dissolution Of Partnership Firm Once Dispute Is Referred: Madhya Pradesh HC
5 days, 23 hours ago

Arbitrator Empowered To Pass Order For Dissolution Of Partnership Firm Once Dispute Is Referred: Madhya Pradesh HC

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The Madhya Pradesh High Court bench of Justice Subodh Abhyankar has held that the Arbitrator is empowered to pass an order for dissolution of the partnership firm once the matter is referred. 1 and 2 submitted that the non-applicant No.3 has taken various grounds for not entertaining the present application, including that of, i) the locus of the applicant, and …

Mere Existence Of Arbitration Clause In Agreement Does Not Automatically Bar Jurisdiction Of Civil Court: Gujarat High Court
1 month ago

Mere Existence Of Arbitration Clause In Agreement Does Not Automatically Bar Jurisdiction Of Civil Court: Gujarat High Court

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The Gujarat High Court bench of Justice Divyesh A. Joshi has held that mere existence of arbitration clause in the agreement does not bar jurisdiction of the civil court automatically. Courts generally construe the provisions strictly when jurisdiction of the civil courts is claimed to be excluded.” It further observed that in ITI Ltd. vs. Siemens Public Communications Network Ltd.,, …

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court
1 month ago

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court

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The Rajasthan High Court bench of Justice Sudesh Bansal has held that the issue of validity of arbitration agreement more particularly in respect of having essential elements of the arbitration agreement, can better be considered and decided on merits by the arbitration tribunal under section 16 of the Arbitration Act. They also submitted that Clause 22 of the NIB cannot …

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court
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1 month ago

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court

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The Rajasthan High Court bench of Justice Sudesh Bansal has held that the court under section 11 of the Arbitration Act cannot enter into merits of subject matter of the disputes. It submitted that since the disputes/ differences have arisen between the parties, due to noncompliance of the collaboration agreement, which are arbitral in nature and an arbitration agreement incorporated …

Whether Non-Signatory Bound By Arbitration Agreement Can Be Decided By Tribunal, Not Referral Court U/S 11 Of Arbitration Act: Allahabad HC
1 month, 3 weeks ago

Whether Non-Signatory Bound By Arbitration Agreement Can Be Decided By Tribunal, Not Referral Court U/S 11 Of Arbitration Act: Allahabad HC

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The Allahabad High Court bench of Justice Manoj Kumar Gupta affirmed that referral court under section 11 of the Arbitration Act stage cannot examine as to whether the non-signatory is bound by the arbitration agreement or not. Brief Facts The instant application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by the applicants invoking the …

Award Can Be Set Aside U/S 34 Of Arbitration Act If Arbitrator Travels Beyond Arbitration Agreement: Madhya Pradesh HC
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1 month, 4 weeks ago

Award Can Be Set Aside U/S 34 Of Arbitration Act If Arbitrator Travels Beyond Arbitration Agreement: Madhya Pradesh HC

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The Madhya Pradesh High Court bench of Justice Subodh Abhyankar affirmed that if arbitrator travels beyond the terms of the arbitration agreement while passing an award, such an award is liable to be set aside under section 34 of the Arbitration Act. Brief Facts This Arbitration Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 has been filed …

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine
11 months, 1 week ago

Claims Related To Company Are Arbitrable Even Though It Is Non-Signatory To Arbitration Agreement, Delhi High Court Reinforces GOC Doctrine

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The Delhi High Court bench comprising Justice Pratibha M. Singh held that the disagreements related to the partners' business activities, whether conducted through the firm or the company, fall within the scope of arbitrable matters. Ltd. and held that common business ventures of the partners, whether conducted through the firm or the Company, fell within the purview of the arbitration …

Power Of Arbitrator To Resolve Dispute In A Partnership Flows From Clauses Of Partnership Deed: Karnataka High Court
1 year, 7 months ago

Power Of Arbitrator To Resolve Dispute In A Partnership Flows From Clauses Of Partnership Deed: Karnataka High Court

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The Karnataka High Court has made it clear that in a partnership deed that provides for appointment of Arbitrator, the power of Arbitrator to resolve the dispute flows from the clauses of the partnership deed. Moreover, assuming that the petitioner could invoke arbitration clause and seek appointment of arbitrator, there is no arbitrable dispute since clause-13 of the partnership deed …

Arbitration Agreement Executed By Joint Venture Can’t Be Invoked By Its Constituents: Patna High Court
1 year, 8 months ago

Arbitration Agreement Executed By Joint Venture Can’t Be Invoked By Its Constituents: Patna High Court

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The Patna High Court has ruled that an arbitration agreement executed by a Joint Venture cannot be invoked by the constituents of the said Joint Venture, since they cannot be considered as a party to the arbitration agreement. While dealing with a petition under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of arbitrator, the bench of …

Arbitration Cases Monthly Round-Up: October 2022
2 years, 2 months ago

Arbitration Cases Monthly Round-Up: October 2022

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Supreme Court: Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court Case Title: Executive Engineer versus Gokul Chandra Kanungo The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would …

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022
2 years, 3 months ago

Arbitration Cases Weekly Round-Up: 2 October To 8 October, 2022

Live Law  

Supreme Court: Arbitral Tribunal Must Give Reasons For Fixing Interest Rate; Award Holder Not Entitled To Interest For Delay Caused By It : Supreme Court Case Title: Executive Engineer versus Gokul Chandra Kanungo The Supreme Court recently held that a case where the award holder was responsible for delaying the proceedings which led to a huge lapse of time would …

Mere Pendency Of A Civil Suit Is Not An Absolute Bar To A Petition Under Section 11 Of The A&C Act: Bombay High Court
2 years, 6 months ago

Mere Pendency Of A Civil Suit Is Not An Absolute Bar To A Petition Under Section 11 Of The A&C Act: Bombay High Court

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The High Court of Bombay has held that mere pendency of a Civil Suit is not an absolute bar to a petition under Section 11 of the A&C Act as long as the petitioner can withdraw its suit before the defendant file its statement on the issue. The Contention Of The Parties The applicants sought the appointment of the arbitrator …

Novation Of Partnership Deed, Arbitration Clause Contained In The Deed Can Be Invoked: Bombay High Court
2 years, 7 months ago

Novation Of Partnership Deed, Arbitration Clause Contained In The Deed Can Be Invoked: Bombay High Court

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The Bombay High Court has ruled that the allegation of forgery is required to be dealt with at the stage of trial before the Arbitrator. The applicant Praful A. Mehta entered into a partnership deed with the 1st respondent Nainesh M. Gandhi and executed a partnership deed that contained an arbitration clause. Thereafter, the partnership firm was reconstituted and a …

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