KARTIK RADIA Vs. M/S. BDO INDIA LLP

JUDGEMENT

(1.) Whether disputes between partners of a limited liability partnership ("LLP") and the LLP can at all be covered by the arbitration agreement contained in a limited liability partnership agreement (" LLP Agreement") to which the LLP is not a signatory, is the short question that has arisen in this Application filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 (" Arbitration Act ").

(2.) For the reasons set out below, I reject the absolute proposition canvassed by the Respondents - that because an LLP is not a signatory to the LLP Agreement, it can never be a party to proceedings initiated under the arbitration clause in such agreement.

(3.) The Applicant, Mr. Kartik Radia ("Radia") is a former partner of BDO India LLP, which is Respondent No. 1 (" BDO"). Mr. Milind Kothari, the Managing Partner of the LLP is Respondent No. 2 (" Kothari"). Both Respondents present trenchant objection to arbitration initiated under the LLP Agreement dated August 1, 2014, on the premise that BDO is not a signatory to the LLP Agreement.