RAJESH KMAR BANSAL Vs. COUNTRYSIDE BUILDERS

JUDGEMENT

(1.) SINCE both these applications under Section 8 of the Arbitration and Conciliation Act, 1996 (hereafter referred to as 'the Act') arise on the basis of the same agreement, therefore, are being disposed of by this common order.

(2.) BRIEF facts leading to the presentation of these applications are that the plaintiff has instituted the suit against the defendants for dissolution of partnership firm (defendant No. 1), for rendition of accounts, etc. The suit is at the initial stage. Before filing the written statement, defendant No. 2 filed OMP No. 179/2004 averring therein that the deed of partnership between the parties contain an arbitration clause that any dispute that may arise amongst the partners pertaining to the affairs of the partnership shall be referred to the arbitration of an arbitrator whose decision shall be final and binding on the partners, therefore, in view of this arbitration clause, the dispute is required to be referred to the arbitrator.

(3.) THE applications have been resisted by the plaintiff on the grounds that Clause 12 of the partnership deed relied by the defendants for referring the dispute to an arbitrator is a matter of record and is not denied but it is disputed that this clause is not such which leaves no room for instituting the suit in the Court. On the contrary, the clause by its nature is not binding on the partners as it specifically provides that jurisdiction of the Civil Court shall not be ousted.