Sanjay K. Agrawal, J.

This appeal has been filed under section 34(1)(a) of the Arbitration and Conciliation Act, 1996 (henceforth "Act, 1996") against the judgment and decree dated 23.04.2011 passed by District Judge, Rajnandgaon in M.J.C. No.23/2010 whereby appellant's application under Section 9 of the Act, 1996 has been rejected.

2. The appellant had filed an application under Section 9 of the Act, 1996 stating inter alia that the appellant is a duly registered partnership firm; there is arbitral dispute exists between the parties as one of the partner namely Shri Gautam Chand Jain has expired so the appellant-firm has sent the letter about on 19.12.2007 but the respondents did not heed to the said letter and have made a demand for recovery of Rs. 7,80,600 from the appellant-firm; it has further been stated as per Clause 37 of the agreement, no proceeding for recovery can be made against the appellant for the amount in question.

3. Learned District Judge, by its impugned order, rejected the application holding principally that no proceedings for arbitration has been initiated by the petitioner and, therefore, no interim measure protection can be granted in favour of the peti