A C RAMANATHAM NAIDU Vs. B SUBBARAMI REDDY

JUDGEMENT

(1.) This miscellaneous appeal is directed against the order and decretal order dated 1-3-1993 in I.A.No. 125 of 1992 in O.S.No. 4 of 1992 on the file of the Court of the Subordinate Judge, Srikalahasti.

(2.) Respondent filed O.S.No. 4/92 seeking a declaration that the partnership firm "Sri Ramasudha Oil Mills" at Panagal, Srikalahasti has been dissolved with effect from 20-12-1991 and for taking of the accounts of the firm; alternatively a direction is sought dissolving the said firm the date to be fixed by the Court and for taking of the accounts of the said firm. The respondent-plaintiff also sought a direction appointing him as the Receiver of the firm during dissolution till the winding up of the business is complete. The appellant, who is the defendant in the suit, filed a written statement contesting on various counts, including maintainability of the suit.

(3.) Appellant-defendant also filed I.A.No. 125/92 under Section 34 of the Arbitration Act, 1940 read with Section 151 of the Civil Procedure Code before the Court below seeking stay of all further proceedings in the suit. The grounds urged therein by the appellant-defendant were that in terms of Clause 13 of the partnership deed dated 1-11-1974 any dispute arising out of the partnership is referable to arbitrator and, therefore, the suit is not maintainable. It was also contended that arbitrators have also beenappointed by both the parties; that the date 21-12-1991 was fixed for the arbitrators to meet at a particular place and decide the dispute; that when the partnership is at will, in terms of Section 43 of the Arbitration Act, no suit is maintainable and that, therefore, till the arbitrators settled the entire dispute, proceedings in the suit cannot be allowed to be continued.