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SANJIV KHANNA, SANJAY KUMAR
Tarun Dhameja – Appellant
Versus
Sunil Dhameja – Respondent
ORDER
Leave granted.
2. In the present case, the arbitration clause in the Deed of Partnership dated 16.07.2016 reads as under: -
That if at any time either during the continuance of the partnership or after the retirement of any partner, any dispute or difference shall arise between the partners or their respective heirs or any one claiming through or under them, the same shall be referred to arbitration. Arbitration shall be optional & the arbitrator will be appointed by partners with their mutual consent. In any case of dispute arise then the Jurisdiction of Indore Civil Court shall be applicable & acceptable by the partners.”
3. In our opinion, it cannot be said that the arbitration clause is optional in the sense that the arbitration clause is nonexistent or that the matter would be referred to arbitration only if all the parties to the dispute agree to refer the dispute to arbitration.
4. In Vidya Drolia v. Durga Trading Corpn., (2021) 2 SCC 1 this Court delineated the issue of interpretation and construction of an arbitration clause and referred to the following observations in Fili Shipping Co. Ltd. v. Premium Nafta Products Ltd., 2007 UKHL 40:
Appointment of Arbitrator – Where parties cannot agree upon a common name as to who will act as Arbitrator, court can appoint Arbitral Tribunal.
Interpretation of arbitration clause and validity of appointment of Sole Arbitrator.
The civil court must refer disputes to arbitration as per Section 8 of the Arbitration Act when an arbitration clause exists, focusing on jurisdiction ouster rather than civil jurisdiction retention.
The court established that parties must adhere to arbitration as per the arbitration clause in the Partnership Deed, affirming the arbitrator's jurisdiction over disputes arising from the partnership....
The main legal point established in the judgment is that the dispute amongst the partners regarding the dealings of the firm could be referred to arbitration as per the partnership deed, but once the....
Legal heirs of a deceased partner are bound by the arbitration clause in the partnership deed, allowing disputes to be referred to arbitration despite the death of a partner.
Dissolution of partnership - Non-compliance of Clause 18 of Partnership Deed - Absence of any embargo to refer post dissolution dispute to Arbitrator, it is not possible to accept that Arbitration cl....
The court upheld the validity of an arbitration clause in a partnership agreement, enabling resolution of disputes through arbitration.
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