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IN THE HIGH COURT OF KERALA AT ERNAKULAM
G. GIRISH
Shibu R. S/o Ramachandran Nair – Appellant
Versus
Manoj Muyyodi S/o Radhakrishnan Nair – Respondent
ORDER :
1. The petitioner, one of the partners of the 3rd respondent partnership firm, has filed this request under Section 11 (5) of the Arbitration and Conciliation Act, 1996 for the appointment of a sole arbitrator for the settlement of the disputes mentioned in Annexure-3 plaint.
2. The 3rd respondent partnership firm was constituted by the petitioner and respondents 1 and 2, by virtue of a partnership agreement executed on 11.09.2017 with the objective of conducting a service and repair shop of four wheeler vehicles, wherein, mechanical work, electrical work, body work, wheel alignment and similar activities were proposed to be undertaken. The deed of partnership so executed by the petitioner and respondents 1 and 2 is produced as Annexure-I. Clause (16) of Annexure-1 contains the arbitration clause which reads as follows :
“16). ARBITRATION
Any dispute or difference of opinion that may arise between the partners, their representatives or heirs with regard to the accounts, profits and losses of the business or rights or liabilities of partners under this deed or in the event of dissolution of the firm or any matter relating to the firm shall be referred to arbitration and all the
Partnership dissolution disputes must be adjudicated in civil court; arbitration is not a viable remedy until a court validates the dissolution.
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....
The arbitration clause in a partnership deed survives dissolution claims, allowing parties to seek arbitration for unresolved disputes.
The court established that parties must adhere to arbitration as per the arbitration clause in the Partnership Deed, affirming the arbitrator's jurisdiction over disputes arising from the partnership....
The arbitration clause survives the dissolution of a partnership firm and can be invoked by any partner, including legal representatives, to resolve disputes.
The court held that an arbitrator can be appointed to resolve disputes within a partnership agreement, including dissolution matters, provided the application is timely and properly invoked.
The main legal point established in the judgment is the narrow interpretation of Section 11(6) and the legislative policy to minimize court intervention in appointing arbitrators.
Dissolution of partnership - Non-compliance of Clause 18 of Partnership Deed - Absence of any embargo to refer post dissolution dispute to Arbitrator, it is not possible to accept that Arbitration cl....
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