(1) Partnership Act, 1932--S. 69(3) -- Arbitration and Conciliation Act, 1996 -- S. 9 -- bar under S. 69(3) -- does not affect maintainability of application under S. 9 of 1996 Act -- such application is not a suit.

       M/s. Ashok Traders are in liquor trade. In the deed of partnership entered into on 27.2.2002, there was 7 partners including Bhagwati Prasad Kulhara and 6 others. The partnership firm was registered with Registrar of Firms. Six partners (i.e., other than Bhagwati Prasad Kulhara) retired from the partnership and a new partnership came to be constituted on 5.3.2002 evidenced by a deed of the even date wherein all the persons belonging to Groups A, Band C are partners. However, the names of the new partners were not communicated to the Registrar of Firms. .... For conveniences sake, we would refer to the partnership dated 27.2.2002 as Partnership - I, the partnership dated 5.3.2002 as Partnership - II and the alleged partnership dated 6.3.2003 as Partnership - III.

       The business ran smoothly upto February 2003 and then differences and disputes are alleged to have arisen amongst the partners. Clause 20 of the Partnership Deed - II incorporates an arbitration clause. Group‘ ‘B" alleges the existence of yet another deed of partnership which is dated 6.3.2003 wherein the names of the members of Group "An are not to be found mentioned as partners. This Partnership-III is also not registered. [Paras 3 & 4

       On 22.7.2003, Gurumukh Das Saluja of Group "An filed an application under section 9 of the Arbitration and Conciliation Act, 1996 wherein the principal relief sought for is the appointment of a receiver under section 9(ii) (d) of the Act to take charge of the entire business of the firm. Other incidental injunctions are also sought for. Group "B" contested the application on very many grounds and mainly by submitting that the application was not maintainable in view of the bar enacted by section 69(3) of the Partnership Act as the name of the applicant does not figure in the Register of Firms as partner of the firm. The plea has prevailed with the learned Additional District Judge resulting in dismissal of the application. Gurumukh Das Saluja preferred an appeal before the High Court under section 37(1) (a) of the A & C Act. During the pendency of the appeal an application under section 9 pleading similar facts and seeking similar reliefs, as was done before the trial Court, was filed. Group "B" contested the application on all possible grounds. The factum of Group "A" being partners of the firm so far as the contract for the year 2003-04 is concerned, was vehemently denied. It was reiterated that the application was hit by section 69(3) of the Partnership Act and hence was liable to be dismissed. The High Court has allowed the appeal. [Para 6

       The submission made by the learned counsel for the parties have centered around two questions: one, effect of the bar created by section 69(3) of the Partnership Act on maintainability of an application under section 9 of the A & C Act, 1996; and two, in the event of the question of maintainability being decided for Group "A", what interim arrangement, whether by way of appointment of receiver or otherwise, would meet the ends of justice? [Para 7

       Held: In our opinion, which we would term as prima facie, the bar enacted by section 69 of the Partnership Act does not affect the maintainability of an application under section 9 of A & C Act.

        A & C Act, 1996 is a long leap in the direction of alternate dispute resolution systems. It is based on UNCITRAL Model. The decided cases under the preceding Act of 1940 have to be applied with caution for determining the issues arising for decision under the new Act. An application under section 9 under the scheme of A & C Act is not a suit. Undoubtedly, such application results in initiation of civil proceedings but can it be said that a party filing an application under section 9 of the Act is enforcing a right arising from a contract? "Party" is defined in clause (h) of sub-section (1) of section 2 of A & C Act to mean "a party to an arbitration agreement". So, the right conferred by section 9 is on a party to an arbitration agreement. The time or the stage for invoking the jurisdiction of Court under section 9 can be (i) before, or (ii) during arbitral proceedings, or (iii) at any time after the making of arbitral award but before it is enforced in accordance with section 36. AIR 1999 SC 565 and AIR 2000 SC 2678 relied on AIR 1964 se 1882, JT 1989(3) se 146 and (1998) 8 see 559 discussed and explained. [Paras 12 and 13

       (2) Arbitration and Conciliation Act, 1996--S. 9-- interim relief -- appointment of receiver -- case of partnership in liquor business-partner already running business appointed as receiver--observer appointed and conditions imposed. [Para 22

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       eSa] v‘kksd VªsMlZ e| dk O;kikj djrs gSaA 27-2-2002 dks fu"ikfnr fd, x, Hkkxhnkjh foys[k esa lkr Hkkxhnkj Fks ftuesa Hkxorhçlkn dqYgkjk rFkk 6 vU; lfEefyr FksA Hkkxhnkjh QeZ jftLVªkj] QElZ ds ikl jftLVªhÑr FkhA Ng Hkkxhnkj ¼vFkkZr~ Hkxorhçlkn dqYgkjk ds vfrfjDr½ Hkkxhnkjh ls fuo`Ùk gks x, rFkk 5-3-2002 dks ,d ubZ Hkkxhnkjh xfBr dh xbZ tks mlh fnukad ds foys[k }kjk lkf{;r gS ftlesa lewg ,] ch vkSj lh ds leLr O;fDr Hkkxhnkj gSA rFkkfi] u, Hkkxhnkjksa ds ukeksa dh lalwpuk jftLVªkj] QElZ dks ugha nh xbZA---lqfo/kk ds fy, ge Hkkxhnkjh fnukad 27-2-2002 dk funsZ‘k Hkkxhnkjh&1 dh Hkk¡fr] Hkkxhnkjh fnukad 5-3-2002 dk funsZ‘k Hkkxhnkjh&2 dh Hkk¡fr rFkk vfHkdfFkr Hkkxhnkjh fnukad 6-3-2003 dk funsZ‘k Hkkxhnkjh&3 dh Hkk¡fr djsaxsA

       dkjckj Qjojh 2003 rd fufoZ?u pyk vkSj rc Hkkxhnkjksa ds e/; erHksn vkSj fookn mn~Hkwr gksuk vfHkdfFkr gSA Hkkxhnkjh foys[k&2 ds [kaM 20 esa ek/;LFke [kaM lfEefyr gSA lewg ch dk vfHkdFku gS fd Hkkxhnkjh dk ,d vU; foys[k fnukad 6-3-2003 vfLrRo esa gS ftlesa lewg , ds lnL;ksa ds uke Hkkxhnkjksa ds #i esa mfYyf[kr ugha gSA ;g Hkkxhnkjh&3 Hkh jftLVªhÑr ugha gSA ¼iSjk 3 ,oa 4½

       22-7-2003 dks lewg , ds xq#eq[knkl lywtk us ek/;LFke vkSj lqyg vf/kfu;e] 1996 dh /kkjk 9 ds v/khu vkosnu Qkby fd;k ftlesa bZfIlr eq[; vuqrks"k QeZ ds laiw.kZ dkjckj dk çHkkj laHkkyus ds fy, vf/kfu;e dh /kkjk 9¼2½¼?k½ ds v/khu fjlhoj dh fu;qfDr gSA vU; vkuq"kafxd O;kns‘k Hkh bZfIlr gSA lewg ch us vusd vk/kkjksa ij vkosnu dk fojks/k fd;k] vkSj eq[;r% ;g fuosnu dj fd;k fd Hkkxhnkjh vf/kfu;e dh /kkjk 69¼3½ }kjk vf/kfu;e otZu dh n`f"V ls vkosnu pykus ;ksX; ugha gS D;ksafd vkosnd dk uke Qeks± ds jftLVj esa QeZ ds Hkkxhnkj ds :i esa vafdr ugha gSA ;g vfHkopu fo}ku vij ftyk U;k;k/kh‘k ij vfHkHkkoh jgk ftlds ifj.kkeLo:i vkosnu [kkfjt dj fn;k x;kA xq#eq[knkl lywtk us mPp U;k;ky; ds le{k ek/;LFke vkSj lqyg vf/kfu;e dh /kkjk 37¼1½¼d½ ds v/khu vihy çLrqr dhA vihy ds yacu ds nkSjku /kkjk 9 ds v/khu vkosnu Qkby fd;k x;k ftlesa mUgha rF;ksa dk vfHkopu fd;k x;k Fkk vkSj mUgha vuqrks"kksa dh bZIlk dh xbZ Fkh tSls fopkj.k U;k;ky; ds le{k fd, x, FksA lewg ch us leLr laHko vk/kkjksa ij vkosnu dk fojks/k fd;kA tgk¡ rd o"kZ 2003&04 ds fy, lafonk dk laca/k gS] lewg , dk QeZ ds Hkkxhnkj gksus ds rF; dk çcy çR;k[;ku fd;k x;kA iqujko`fÙk dh xbZ fd vkosnu Hkkxhnkjh vf/kfu;e dh /kkjk 69¼3½ ls vkgr gksrk gS vkSj blfy, [kkfjt fd, tkus ;ksX; gSA mPp U;k;ky; us vihy eatwj dj yh gSA ¼iSjk 6½

       i{kdkjksa ds fo}ku dkmUlsyksa }kjk fd, x, fuosnu nks ç‘uksa ij dsafnzr gS%

       ,d] ek/;LFke vkSj lqyg vf/kfu;e] 1996 dh /kkjk 9 ds v/khu vkosnu ds pykus ;ksX; gksus ij Hkkxhnkjh vf/kfu;e dh /kkjk 69¼3½ }kjk l`ftr otZu dk çHkko rFkk nks] pyk, tkus ;ksX; gksus dk ç‘u lewg , ds fy, fofuf‘pr fd, tkus dh n‘kk esa fdl varfje bartke ls] pkgs og fjlhoj dh fu;qfDr }kjk gks ;k vU;Fkk] U;k; ds mn~ns‘; dh iwfrZ gksxh\ ¼iSjk 7½

       vfHkfu/kkZfjr % gekjh jk; esa] ftls ge çFken`"V~;k dk vfHk/kku nsaxs] Hkkxhnkjh vf/kfu;e dh /kkjk 69 }kjk l`ftr otZu ls ek/;LFke vkSj lqyg vf/kfu;e dh /kkjk 9 ds v/khu vkosnu ds pyk, tkus ;ksX; gksus ij çHkko ugha iM+rkA

       ek/;LFke~ vkSj lqyg vf/kfu;e] 1996 vkuqdfYid fookn lek/kku i)fr;ksa dh fn‘kk esa cM+k dne gSA ;g ;w ,u lh vkb Vh vkj , ,y ekMy ij vk/kkfjr gSA lu~ 1940 ds iwoZxkeh vf/kfu;e ds v/khu fofuf‘pr ekeyksa dks u, vf/kfu;e ds v/khu fofu‘p;kFkZ mn~Hkwr fook|dksa ds vo/kkj.k ds fy, lrdZrkiwoZd ykxw fd;k tkuk gksxkA ek/;LFke vkSj lqyg vf/kfu;e dh ;kstukarxZr /kkjk 9 ds v/khu vkosnu okn ugha gSA fu%lansg ,sls vkosnu ds ifj.kkeLo:i flfoy dk;Zokgh vkjaHk gksrh gS ijarq D;k ;g dgk tk ldrk gS fd vf/kfu;e dh /kkjk 9 ds v/khu vkosnu Qkby djus okyk i{kdkj lafonk ls mn~Hkwr vf/kdkj çofrZr dj jgk gS\ ek/;LFke~ vkSj lqyg vf/kfu;e dh /kkjk 2 dh mi/kkjk ¼1½ ds [kaM ¼t½ esa ^^i{kdkj** dh ifjHkk"kk bl vFkZ esa nh xbZ gS&^^ek/;LFke djkj dk i{kdkj**A vr% /kkjk 9 esa vf/kdkj ek/;LFke djkj ds i{kdkj dks çnÙk gSA /kkjk 9 ds v/khu U;k;ky; dh vf/kdkfjrk dk vkJ; ysus dk le; ;k çØe ¼1½ ek/;LFke~ dk;Zokgh ls iwoZ] ;k ¼2½ nkSjku ;k ¼3½ ek/;LFke~ iapkV fd, tkus ds i‘pkr fdlh Hkh le; ijarq mlds /kkjk 36 ds vuqlkj çofrZr fd, tkus ls iwoZA , vkb vkj 1999 ,l lh 565 rFkk , vkb vkj 2000 ,l lh 2678 voyafcrA , vkb vkj 1964 ,l lh 1882] ts Vh 1989¼3½ ,l lh 146 rFkk ¼1998½8 ,l lh lh 559 foosfpr rFkk Li"VhÑrA ¼iSjk 12 ,oa 13½

       ¼2½ ek/;LFke~ vkSj lqyg vf/kfu;e] 1996&/kkjk 9& &varfje vuqrks"k&fjlhoj dh fu;qfDr&e| ds dkjckj esa Hkkxhnkjh dk ekeyk& &igys ls dkjckj pykus okyk Hkkxhnkj fjlhoj fu;qDr& &çs{kd fu;qDr rFkk ‘krs± vf/kjksfirA ¼iSjk 22½