Unregistered partnership firms can enforce rights for accounts and dissolution via arbitration, as outlined in the Indian Partnership Act, Section 69.

1. S.69 of the Partnership Act, 1932 lays down the effect of non - registration of a firm on suits to enforce a right arising from a contract by a partner against other partners or by or on behalf of a firm against any third party and provides that such a suit shall not be entertained unless the firm is registered and the person suing is or has been shown in the Register Of Firms as a partner. The question of law raised in this petition under S.8(b) read with S.20(4) of the Arbitration Act, 1940 (for short called the Act) is, as to whether such a petition is barred at the instance of a partner of an unregistered partnership firm.

2. The facts are not in dispute. The petitioner and respondents are brothers and sister. On April 1, 1968 they entered into a partnership agreement to carry on the business of Ship Chartering, Ship Brokerage and other allied lines on the norms and conditions which were later reduced into writing in the form of a partnership deed dated May 1, 1968 duly executed between the parties. Some of the terms and conditions of the partnership were varied later and a fresh partnership deed was drawn and executed an April 12, 1971. The partnership deed contains the arbitration agreement between the parties according to. which if any dispute shall arise between the parties in respect of the conduct of the business of the partnership, in respect of the interpretation, operation or enforcement of any of the terms and conditions of the deed or in respect of any other matter, cause or things whatsoever, not therein otherwise provided for, the same shall be referred to for adjudication to an arbitrator to be appointed as per provisions of the Arbitration Act for the time being in force. Certain disputes arose between the parties in carrying on the business of the firm and its accounting. The petitioner challenged the actions of respondent No. 1 and demanded maintenance of true and proper accounts of the partnership. The partnership being at Will, respondent No. 1 dissolved the partnership firm with effect from Sept. 15, 1976. Respondent No. 1 sent a balance - sheet prepared by him for the period from April 1, 1976 to Sept. 15, 1976 to the petitioner which was not accepted as correct and was questioned. The petitioner demanded the rendition of true and proper accounts of the partnership dealings and transactions up to Sept. 15, 1976 and called upon the respondents to do so. On the failure of the respondents, a dispute arose between the parties which, according to the petitioner, was to be referred to arbitration in terms of the arbitration agreement between the parties. The petitioner then invoked the jurisdiction of this Court by a petition under S.20 of the Act with a prayer for directing the arbitration agreement contained in the partnership deed dated April 12, 1971 being filed in this Court; for appointment of an arbitrator in terms thereof and to refer the entire disputes between the parties with regard to the affairs, accounts, dealings, termination of the partnership and rendition of true and proper accounts in relation thereto between the parties.

3. The petition which was registered as a suit, being Suit No. 426 - A of 1977 came up for hearing before this Court and was allowed on Aug, 12, 1977. The arbitration agreement contained in the deed of partnership dated April 12, 1971 was directed to be filed, Shri P.N. Khanna, a former Judge of this Court, was appointed as the sole arbitrator to decide the disputes covered by that petition, Shri P.N. Khanna entered upon the reference on August 29, 1977 and took upon h