Arbitration by unregistered firm

This query is : Resolved 

15 September 2009

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 ?

R.R. KRISHNAA (Expert)
15 September 2009

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.

A. A. JOSEOnline (Expert)
15 September 2009

The opinion of KRISHNA legal is right.riven

Manish Singh (Expert)
15 September 2009

As per my view, the restriction upon unregistered firm to approach court on its own name is not relevant for settling the dispute under Arbitration & conciliation act. A&C Act is a mechanism to dissolve disputes with mutual agreement and negotiataions which must not be viewed as a legal proceeding yet the arbitration award possess the legal binding force since its a mutual settlement in a form of agreement between the parties.


Raj Kumar MakkadOnline (Expert)
15 September 2009

Unregistered firm can avail opportunity to raise any dispute before Arbitrator as per provisions of Arbitration & conciliation Act.riven

H. S. ThukralOnline (Expert)
22 September 2009

Bar created by Section 69 is not applicable to arbitration proceedings. Kindly read an elaborate judgement of Delhi High Court in Noida Toll Bridge Company Ltd. vs Mitsui Marubeni Corporation dated 16 September, 2005

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