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PRAKASH SHRIVASTAVA
Papiya Mukherjee – Appellant
Versus
Aruna Banerjea – Respondent
ORDER :
Prakash Shrivastava, J.
This application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by the applicant for appointment of arbitrator to resolve dispute between the parties.
2. Plea of the applicant is that she is one of the partners of pathological laboratory namely, Calcutta Clinical Laboratory. The said laboratory is being run by virtue of the original partnership deed which was constituted and re-constituted from time to time. In 1980, fresh partnership deed was executed between Dr. Bonbehari Banerjee, Dr. Dhrubajyoti Banerjea and the applicant. Dr. Bonbehari Banerjee had passed away, therefore, on 20th of May, 1992 Dr. Dhrubajyoti Banerjea and the applicant had entered into a fresh deed of partnership for running the said laboratory business. Dr. Dhrubajyoti Banerjea being of old age had executed the power of attorney in favour of his wife, respondent No.l herein. Dr. Dhrubajyoti Banerjea also passed away on 09th of April, 2015. Further case of the applicant is that in terms of clause 9 of the partnership deed, respondent Nos. 1 and 2 being surviving legal heirs and successors of Dr. Dhrubajyoti Banerjea ought to have been substituted as p
Arbitration agreement – Existence of an arbitration agreement is not affected by death of a party to arbitration agreement.
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.
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 court held that an arbitration clause in a partnership deed survives the death of a partner, allowing the arbitration of disputes related to the partnership's operations.
A legal heir of a deceased partner can seek interim relief under the Arbitration & Conciliation Act, 1996 to protect partnership assets, even in the face of claims of dissolution due to the partner's....
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