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J. B. PARDIWALA, R. MAHADEVAN
Rahul Verma – Appellant
Versus
Rampat Lal Verma – Respondent
ORDER :
1. This petition arises from the judgment and order passed by the Gauhati High Court in Case No. Arb. A./6/2024 dated 22.10.2024 whereby the High Court allowed the appeal filed by the respondents herein under Section 37(1)(a) of the Arbitration and Conciliation Act, 1996 (for short, “Act of 1996”) and thereby quashed and set aside the order dated 09.08.2024 passed by the Civil Judge (Sr. Div.), Dibrugarh in Misc. (J) Case No. 206/2024 arising out of Commercial Suit No. 02/2024 (“impugned judgment”).
2. We heard Ms. Shagufa Salim, learned counsel appearing for the petitioners and Mr. Pavan Kumar Chaturvedi, learned counsel appearing for the respondents.
3. This litigation originates from a dispute between a partner of a partnership firm consisting the legal heirs of another deceased partner. The partnership firm consisted of three partners. It so happened that two of them passed away on 24.12.2022 and 21.11.2023, respectively. It appears from the materials on record that the respondents herein (original defendants in Commercial Suit No. 02/2024) preferred a petition under Section 8 of the Act of 1996 as Misc. (J) Case No. 206/2024 in Commercial Suit No. 02/2024 before the Comme
Arbitration agreement – Existence of an arbitration agreement is not affected by death of a party to arbitration agreement.
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.
The arbitration agreement survives the death of a partner, and legal representatives of the deceased are entitled to enforce the agreement and participate in arbitration proceedings.
The main legal principle established is that a partnership is a contract and cannot be unilaterally continued after the death of a partner, despite any clauses in the partnership deed.
The arbitration clause survives the dissolution of a partnership firm and can be invoked by any partner, including legal representatives, to resolve disputes.
The death of one partner does not automatically dissolve a partnership firm or abate civil proceedings initiated by the firm. The legal representatives of the deceased partner can be impleaded in sub....
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