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2025 Supreme(AP) 487

R. RAGHUNANDAN RAO, HARINATH NUNEPALLY
Dharmateja Bar and Restaurant, Vijayawada, Krishna District – Appellant
Versus
Nathani Bhupathi Rao – Respondent


Advocates:
Advocate Appeared:
For the Appellant : P. Prabhakar Rao
For the Respondent: Sai Gangadhar Chamarty

Table of Content
1. parties involved in a partnership dispute. (Para 1)
2. application for arbitration based on partnership deed. (Para 2 , 3)
3. contentions regarding arbitrator's appointment and participation. (Para 4 , 5 , 6 , 7)
4. arbitration agreement empowers parties for arbitration. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14)
5. court's jurisdiction limited to referring disputes to arbitration. (Para 15 , 16 , 17)
6. parties must agree on appointing arbitrators. (Para 18 , 19)
7. initial appointment defect renders subsequent proceedings void. (Para 20 , 21)
8. appeal allowed; award set aside. (Para 22 , 23)

JUDGMENT :

1. The 1st respondent herein had filed OS No.37 of 2006 before the II Additional District Judge (Fast Track Court), Vijayawada, for settlement of accounts in relation to a partnership firm, which is the 1st appellant herein. The appellants 2 to 4, who are the partners of this firm, were also arrayed as defendants 2 to 4 in the suit.

2. The appellants herein had filed an application in IA No.4592 of 2006 in OS No.37 of 2006 under Section 8 (1) of the Arbitration and Conciliation Act, 1996 [for short ‘the Act, 1996’], contending that the alleged dispute would have to be referred

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