RAMESH CHANDER Vs. JAGDISH CHANDER

JUDGEMENT

(1.) This is a petition under Section 11(5X6) of the Arbitration and Conciliation Act, 1996 seeking appointment of arbitrator in respect of disputes arising between the partners of the firm M/s.Empire Art Industries. Admittedly, partnership firm was created by way of unregistered deed of partnership dated 9/1/1964.

(2.) There are three fold objections. Firstly, that an unregistered deed of partnership firm is not enforceable for the purpose of appointment of arbitrator even if the arbitration clause existed therein. In support of this contention, learned counsel for respondent no .'1 has placed reliance upon the judgment Col H.CChopra(Retd.)&Anr. Versus Shri V.C.Mehra 81(1999) DLT pasie 937- However, this question of law has been decided by the Supreme Court once for all in the case of Prabhu Shankar Jaiswal Versus Sri Sheo Narain Jaiswal & Ors . 1996(8)Supreme page 153 wherein previous Judgments of the Supreme Court have been dealt with on which learned counsel for the respondent has relied viz. Jagdish Chandra Gupta Vs.Kajaria Traders( India) Ltd. AIR 1964 SC 1882 and Prem Lata Versus M/s.Ishar Dass Chamanlal & Ors, 1995 (2) SCC 145

(3.) Nature of disputes involved in the aforesaid two judgments was also. discussed and held to be distinguishable so far as the question of law whether the arbitration clause in a partnership deed of an unregistered firm is enforceable or not. It was held by the Supreme Court that "where arbitration is sought under the arbitration clause in a partnership deed of an unregistered firm for the purpose of dissolution and accounts of the partnership firm, the partners can maintain all applications/petitions under the Arbitration Act for the purpose of enforcing their right to secure dissolution and accounts of the partnership firm through arbitration." In view of the settled position of law, objection on- this ground appears to be feeble attempt to resist the petition.