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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Somasekhar Sundaresan, J
Kartik Radia – Appellant
Versus
Bdo India Llp – Respondent
JUDGEMENT:
1. Whether disputes between partners of a limited liability partnership (“LLP”) and the LLP can at all be covered by the arbitration agreement contained in a limited liability partnership agreement (“LLP Agreement”) to which the LLP is not a signatory, is the short question that has arisen in this Application filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”).
2. For the reasons set out below, I reject the absolute proposition canvassed by the Respondents – that because an LLP is not a signatory to the LLP Agreement, it can never be a party to proceedings initiated under the arbitration clause in such agreement.
The Parties:
3. The Applicant, Mr. Kartik Radia (“Radia”) is a former partner of BDO India LLP, which is Respondent No. 1 (“BDO”). Mr. Milind Kothari, the Managing Partner of the LLP is Respondent No. 2 (“Kothari”). Both Respondents present trenchant objection to arbitration initiated under the LLP Agreement dated August 1, 2014, on the premise that BDO is not a signatory to the LLP Agreement.
Issue for Consideration:
4. Radia has been expelled from the LLP. Radia’s grievances relate to his manner of treatment by the Respondents –
An LLP is not a third party to its own LLP Agreement and can be a party to arbitration proceedings despite not being a signatory.
The main legal point established in the judgment is the limited scope of the court's jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996, in appointing an arbitrator. The cour....
A partner cannot submit a dispute to arbitration without express authority from all partners, as required by Section 19(2)(a) of the Indian Partnership Act.
The main legal point established in the judgment is the requirement for an unequivocal and unambiguous consent by the parties to arbitrate, and the application of the prima facie test to determine th....
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....
Non-service of a notice under Section 21 of the Arbitration and Conciliation Act does not bar a party's impleadment in arbitration if they are bound by the arbitration agreement.
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