SHAM LAL BHALLA Vs. T S BHALLA

JUDGEMENT

(1.) -

(2.) THE present application has been filed by defendant under Section 34 of Arbitration Act, 1940 for stay of suit filed by plaintiff for rendition of accounts.

(3.) IN A.I.R. 1971 Calcutta 317 (supra) the Court was interpreting the arbitration clause 14 which reads as under : "That in case of any dispute and difference arising amongst the parties either in the interpretaton of this business or in any matter touching the rights and liabilities of the partners either continuing all the terms or after it has ceased functioning in any other matter relating to in the partnership such dispute shall be referred to the arbitration of as many arbitrators as there may be parties in difference and the award of the said arbitrators or Umpire selected by the arbitrators shall be binding on all the parties equally. It has been held that parties no doubt intended to have their disputes settled in respect of partnership business by arbitrators but the respondent had served a notice for dissolution of partnership which had been duly received by petitioner. Thus. interpreting the arbitration clause it has been observed that if arbitration is allowed to continue and award is made the parties against 185 whom the award is made might challenge the award on the ground that arbitrator had no jurisdiction to decide the validity of the notice of dissolution of partnership. Under the facts and circumstances of that case, it was held that disputes and differences between the parties would be conveniently decided in the suit.