M/S. EXCHANGE Vs. PRADIP KUMAR

JUDGEMENT

(1.) The present appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the 1996 Act") arises out of an order passed in CS (COM) 544 of 2024 dismissing the application filed by the defendant nos.1 to 4 (present appellant nos.1 to 4) under Sec. 8 of the 1996 Act, bearing GA (COM) 4 of 2024, for referring the matter to arbitration.

(2.) The appellants rely on Clause 12 of a deed of partnership dated August 23, 1994 entered into between defendant/appellant no.2 and plaintiff/respondent no.1, thereby forming M/s Exchange, the defendant/appellant no.1-partnership firm. Clause 12 is an arbitration clause, providing that in case of any dispute arising between the partners or their representatives, the same shall be referred for decision of the Chief Divisional Manager of Bharat Petroleum Corporation Limited (BPCL), the defendant no.5/respondent no.2, under whose jurisdiction the subject retail outlet is situated, for arbitration either by him or his nominee and that the decision of the said Arbitrator shall be conclusive and binding on all the partners. The partnership firm was formed for the purpose of running a petrol pump business from a retail outlet under licence from the BPCL.

(3.) The dispute in the suit, as per the appellants, arises out of the said partnership deed of 1994 and hence, being covered by the arbitration clause therein, the matter ought to be referred to arbitration.