VWNKITESHWARA PAI Vs. SATHISH CHANDRA BABU

JUDGEMENT

(1.) The question involved in this Arbitration Request is whether the arbitration clause contained in the partnership deeds can be invoked by the partners, after their retirement from the partnership firm, when the retirement deeds do not provide for appointment of an arbitrator for resolving the disputes.

(2.) The Petitioners and Respondents 1 to 9 were partners of nine partnership firms shown in Annexure A in the Arbitration Request. In the firms, all of the Petitioners and Respondents 1 to 9 are not partners, but some of them are partners in respect of the firms mentioned in Annexure A. There is no dispute that Annexures B to I are the partnership deeds in respect of the firms. There is also no dispute that the Petitioners had retired from the firms and that Annexures J to Q retirement deeds were executed among the partners of the various firms. The terms and conditions therein contain the provisions for ascertaining all loss and profits and for preparation of general account as on 31st March, 2007. The retirement deeds provide that the amount payable to the retiring partner shall be paid within six months from 31st March, 2007 in full and final settlement of all the interests of the retiring partner in the business and the assets and liabilities of the firm.

(3.) In each of the partnership deed, there is an arbitration clause. The arbitration clauses in all the partnership deeds are similar except in one deed. However, there is no arbitration clause in the retirement deeds.