Disputes among partners must be resolved via arbitration as stipulated in the partnership agreement under applicable arbitration statutes.

JUDGMENT

Petitioner is a partner of M/s. MPS Iron and Steel, a registered partnership firm. Respondents 2 and 3 are two other partners. Disputes have arisen between the partners regarding settlement of accounts. The partnership deed has been produced as Annexure A1. Clause 19 of Annexure A1 deed as under:-

“All disputes and differences whatsoever which shall, either during the partnership or after the termination thereof, arise between the partners or their respective representatives or between any partner and the representative of the other partner shall be referred to arbitrators, one to be appointed by each party as per the provisions of the Indian Arbitration Act, 1940 or any other statutory modification or enactment thereof for the time being in force and the award of such arbitrators or the umpire, as the case may be, shall be binding on all the parties tot he said disputes.”

2. The applicant issued Annexure A2 notice invoking the arbitration clause. Reply issued by the 2^nd respondent to Annexure A2 is produced as Annexure A4. The 3^rd respondent also issued a reply which has been produced as Annexure A5. There is no consensus among the parties regarding the Arbitrator to be nominated. Therefore, the applicant has approached this Court. Notice was issued and respondents 2 and 3 have entered appearance through Counsel.

3. Heard the learned Counsel for the applicant and the learned Counsel appearing for respondents 2 and 3. Perused the pleadings and documents. It is clear that serious disputes have arisen between the petitioner and the respondents 2 and 3. In view of the arbitration clause in the Annexure A1, such disputes have to be resolved through arbitration. It is also clear that the applicant invoked the arbitration clause and issued notice as contemplated under Section 21 of the Arbitration and Conciliation Act to the respondents 2 and 3. In the above circumstances, I am of the view that this arbitration request can be allowed.

Therefore, the following directions are issued :-

1. The Kerala High Court Arbitration Centre is directed to nominate a District Judge (Retd.) from Panel-III, preferably from Ernakulam, as the sole Arbitrator to resolve the disputes that have arisen between the petitioner and the respondents under Annexure A1 Deed.

2. The learned Arbitrator may entertain all issues between the parties in connection with the said Agreements, including questions of jurisdiction and limitation, if any, raised by the parties. All contentions of the parties are left open and they are at liberty to raise their claims and counterclaims, if any, before the learned Arbitrator, in accordance with law.

3. The Registry shall communicate the substance of this order to the Kerala High Court Arbitration Centre within ten days and the Centre shall inform the learned Arbitrator within a further period of one week and shall obtain duly signed Form 3 as required under Rule 20(4) of the Kerala High Court (Arbitration Centre) Rules, 2025 and forward the same to this Court.

4. Upon receipt of the Form 3, the Registry shall issue a certified copy of this order with a copy of the Form 3 appended to the Kerala High Court Arbitration Centre. The original of the Disclosure Statement shall be retained by the Kerala High Court Arbitration Centre.

5. The fees of the learned Arbitrator of the Kerala High Court Arbitration Centre shall be governed by Rule 28 of the Kerala High Court (Arbitration Centre) Rules, 2025. The manner in which the fees and costs payable by the parties shall be governed by Rule 27 of the Kerala High Court (Arbitration Centre) Rules, 2025.

6. If the learned Arbitrator needs the assistance of an expert, then he is at liberty to seek such assistance in the course of the arbitration proceedings.

Sd/-