An application seeking reference to arbitration for accounts of a dissolved firm is a proceeding to enforce the petitioner's right to sue for accounts of the dissolved firm and is exempted from the bar under Section 69 of the Indian Partnership Act.

( 1 ) THIS appeal is filed by the petitioner in A. C. No. 2 of 1984, on the file of the Prl. Civil Judge, Shimoga, against his order dated 20/11/1985 allowing his application in part and referring only one of the four points raised by him for arbitration and declining to refer the other three points.

( 2 ) THE parties will be referred to by the rank they held in the lower-Court. It is undisputed that the petitioner and respondents entered into a partnership to carry on business with effect from 1-7-1973 and the terms and conditions of the partnership agreement were reduced into writing as per Ex. R. 3 dated 6-10-1973. The partnership was one at will. It is also undisputed that the respondents issued a notice dated 10-5-1984 dissolving the firm with effect from 10-5-1994. Clause 17 of the terms and conditions of the partnership agreement Ex. R. 3 contemplates reference to arbitration of any dispute that may arise between the parties and it reads as hereunder:"17. If at any time here after, either during the continuance of the partnership or after the dissolution or termination thereof otherwise, any dispute or difference shall arise between the partners or their respective heirs with regard to the construction or interpretation of any term or provision hereof or regarding the accounts, profits or losses of the partnership business or the rights or liabilities of any of the parties hereto or dissolution or winding up of the partnership business or any other matter or thing relating to the partnership or its assets or business or touching or arising out of this agreement the same shall be referred to the arbitration and the provisions of the Arbitration Act, 1940 and the statutory amendments, modifications or re-enactment thereof for the time being in force shall apply of such arbitration. "in view of the above arbitration agreement, the petitioner wants the claims put forward by him in view of the dissolution of the firm to be referred to arbitation. According to the petitioner, even after the dissolution the respondents have continued the business in the name of the erstwhile firm and have misused and misapplied the properties of the firm and as such he is entitled not only to have the accounts of the firm up to the date of dissolution taken but also to have the accounts subsequent to the date of dissolution examined and to have his share of profits till settlement of account, including a share in the value of the good-will of the firm awarded to him. He has also alleged in the petition that his erstwhile employer Sri. P. R. Naik had sold a bus bearing No. MYS 5676 in his favour for a nominal price and that he had entrusted that vehicle in 1971 to the 2nd respondent who had a permit to run a bus and that the bus is still in good and running condition and that 2nd respondent is liable to return that vehicle to him with reasonable compensation. The petitioner has therefore sought the following four points of dispute to be referred for arbitration: (1) taking out the true and correct account of the profit and loss of erswhile firm with the help of competent person and carve out the share of the petitioner as per the agreement of partnership deed dated 6-10-1973; (2) if the respondents are willing to continue the firm in the name and style of the erstwhile firm namely Sri Krishna Motor Service, without taking the petitioner as partner, the quantum of goodwill and compensation payable to the petitioner, as out going partner; (3) to decide in respect of the vehicle bearing No. MYS 5676 and to deliver the vehicle to the petitioner, with reasonable compensation for the use of the said vehicle; and (4) to find out the changes made in the accounts and the transactions carried out in the name of the erstwhile firm after the dissolution of the firm by notice dated 10-5-1984 to determine the profit and loss of the petitioner or such other reliefs that the Court may deem fit in the circumstances of the case. 2a. The responde