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SUVIR SEHGAL
Prikshit Wadhwa – Appellant
Versus
Vinod K Wadhwa – Respondent
JUDGMENT :
Mr. Suvir Sehgal, J.
This petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short “the Arbitration Act”) to adjudicate the disputes and differences between the parties.
2. Mr. Dheeraj Mahajan, counsel for the petitioners has submitted that petitioner No.1 is the son of petitioner No.2, who is the brother of the respondent. M/s V. Wadhwa & Co., a Chartered Accountancy firm, petitioner No.3, was started by them by way of a partnership. An Instrument of Partnership dated 01.05.2019, Annexure P-1, was executed and Clause 30, thereof, provided for the resolution of disputes through the medium of arbitration. Petitioner No.1 was partner to the extent of 30%, whereas petitioner No.2 and the respondent were partners to the extent of 35% each. He alleges that the respondent committed various acts detrimental to the interest of the firm and started a proprietorship CA firm with a similar name. When the petitioner protested, by notice dated 27.04.2022, Annexure P-2, respondent dissolved the firm without settling the accounts. Petitioner responded by sending a reply dated 29.04.2022, Annexure P-3, and as disputes arose between the parties,
The arbitration clause survives the dissolution of a partnership firm and can be invoked by any partner, including legal representatives, to resolve disputes.
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....
Partnership dissolution and limitation period for arbitration claims.
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.
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....
The arbitration clause in a partnership deed survives dissolution claims, allowing parties to seek arbitration for unresolved disputes.
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