A petition under Sections 8 and 20 of the Arbitration Act by a dissolved partnership firm that is not registered under the Partnership Act is barred under Section 69 of the Partnership Act.

( 1 ) M/s. Paras Ram Darshan Lal filed two petitions (Suit Nos. 678-A of 1974 and 679- A of 1974) u/s 8 and 20 of the Arbitration Act for filing arbitration agreements in Court and appointment of arbitrators in the two cases, The cases are similar in nature and can be disposed of by this judgment. Petitioners firm is a dissolved partnership firm. All the partners of the dissolved firm executed a special power of attorney in favour of Shri Darshan Lal ex-partner authorising him to act on behalf of the firm and to sign all documents. The petitioners allege that various contracts were entered into by them with the Union of India for construction of bridges of the value of more than Rs. 50 lakhs, that a contract for construction of four girdar bridges and one RCC Slab bridges was executed on 1. 5. 65 vide agreement No. 29/gal, disputes arose and by letter dated 22. 9. 69 the respondent was requested to appoint an arbitrator but the respondent did not appoint any arbitrator and therefore they filed the present petition. In Suit No. 679-M of 1974 the contract was executed on 25. 5. 68 May, 1968, vide Agreement No. 30/cal.

( 2 ) THE question in both the cases is ; Whether the petition u/s 8 and 20 of the Arbitration Act is barred u/s 69 of the Indian Partnership Act, 1939 (hereinafter called the Act ). It is admitted that the petitioners firm ram Darshan Lal is not registered under the Act. It is contended on behalf of the respondents that the petitioners firm being not registered under the Act is not entitled to institute the present petition u/s 8 and 20 of the Arbitration Act and that the same is barred u/s 69 of the Act, It is further contended that the present petition is not for dissolution of the firm, or accounts of the dissolved firm, or enforcement of any right or power to realise the property of a dissolved firm, but it is only for filing of the arbitration agreement in court and for appointment of arbitrator.

( 3 ) THE learned counsel for the petitioners on the other hand contended that a petition u/s 8 and 20 of the Arbitration Act is not a suit and that Section 69 of the Act does not apply to such a petition as the firm already stands dissolved. In the alternative it was contended that the present petition is for the enforcement of right or power to realise the property of the dissolved firm.

( 4 ) THE present petitions have been filed by the petitioners to enfforce their rights arising from the said two contracts dated 1. 5. 65 and 25 5. 65 1965. Section 69 of Partnership Act 1932 is " (1) No Suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court "by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner (2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners. (3) The provisions of Sub-sections (1) and (2) shall apply also to a claim of set- off or other proceeding to enforce a right arising from a contract, but shall not affect. (a) the enforcement of any right to sue for the dissolution of a firm, or any right or power to realise the property of a dissolved firm, or (b) the powers of an official assignee, receiver or Court under the Presidency- town Insolvency Act, 1909, or the Provincial Insolvency Act, 1920, to realise the property of an insolvent partner, (4): This section shall not apply ; (a) to firms or to partners in firms which have no place or business in the territories to which this Act extends, or whose places of business in the said territories by notification under section 56 of this Chapter does not apply, or (b) to any suit or claim of set-off not exce