SANJAY KUMAR TALWAR Vs. VARSHA PROMOTERS AND DEVELOPERS

JUDGEMENT

(1.) On 10th February, 1994 when this suit came up for hearing, the learned counsel for the respondents submitted that the suit itself was not maintainable in view of the bar under Sub-sections (2) and (3) of Section 69 of the Indian Partnership Act, 1932 (hereinafter referred to as 'the Act'). Accordingly the following preliminary issue was framed:-

(2.) Briefly stated, the facts of the case are that the petitioner entered into partnership with respondents 2 and 3 by way of partnership deed dated 22nd December, 1988 and the said partnership firm functioned in the name and style of M/s. Varsha Promoters & Developers (hereinafter referred to as 'the firm). It may be pointed out here that it is the admitted case of the parties that the said partnerhip firm was not registered with the Registrar of firms. The partnership was at will and the partnership was to carry on the business of trading, developing, building and investing in lands, houses, buildings, etc. As per the allegations made in the petition, land was purchased by the firm at Sewaba Mauja, Khajuri, Tehsil & District Rewari admeasuring 294 Kanal, 19 Marias and the said land was to be developed by the firm. It is also stated in the petition that the partnership did not make any profit. It is further alleged in the petition that respondents 2 and 3 were fraudulently trying to sell the land at Rewari belonging to the firm for their own benefit and not tor the benefit of the firm.

(3.) It is further stated in the petition that though the partnership stood dissolved, disputes and differences had arisen regarding the mode of settlement of accounts between the parties and regarding payments of debts and the profits to be paid to each partner after dissolution. In view of these allegations the petitioner filed the present petition under Section 20 of the Indian Arbitration Act, 1940 and in this petition it lias been prayed that the following disputes be referred to arbitration in terms of the arbitration clause contained in the partnership agreement dated 22nd December. 1988:-