K. KANNAN, J.

I. Genesis of Action

The defendants in a suit, filed at the instance of a partner of a firm seeking for dissolution, moved an application under Section 8 of the Arbitration and Conciliation Act, 1996 seeking for a reference to arbitration on the basis that the subject-matter of suit was governed by an arbitration agreement. The application was dismissed and the aggrieved parties are the civil revision petitioners before this court.

II. Cure Reason for Dismissal of the Petition

While dismissing the application, the court below took note of the averments in the plaint regarding the so-called mismanagement and fraud practiced by the defendants and interpreted them to mean that disputes arising out of such a situation would not be governed by the relevant clause in the partnership deed though provided with an arbitration clause.

III. The Relevant Clause for Consideration

The partnership deed provided as follows :

"Any disputes arising out of this partnership or as to interpretation, operation or enforcement of terms of this partnership between the parties or their legal representatives shall be referred to the arbitration of a person appointed by the partners who