Arbitration by unregistered firm


Whether bar created by s 69 of the Partnership Act against filing of suit by an unregistered firm is applicable to initiation of proceedings under Arbitration and conciliation Act ? or Can an unregistered firm file an application under s. 9 of Arbitration and conciliation Act ?

 
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yes d bar doesnt apply in case of arbitration proceedings

 
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Legal Manager

An unregistered firm is prohibited from instituting legal proceedings and hence arbitration proceedings also would be not maintainable.  But the rule of non maintainability of suit or proceedings applies only for suing other entities or others, but not for dispute among partners.  For cases involving disputes among partners (like suit for accounts) etc, there is no bar either approaching courts or initiating proceedings under arbitration.


Total likes : 1 times

 
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i dnt agree.. unreg. firm can go fr arbitration!!

 
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Advocate/ Senior Partner

Dear Sir,

I fully concur with the views of Krishna Legal. An unregistered firm cannot sue or be sued and the same would include arbitration proceedings also. The only exception being an inter-se dispute between partners.

Thanks,

Ramakrishnan, ADV

 
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If there is an arbitration agrement between the parties (which includs unregistered firms also) the firm can go to fime section 9 or section 11 application under Arbitraton & Concilation Act, 1996. Similarly, if an unregistered firm enters into an arbitrtion agreement, it can be sued under the same provisions.

 
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