Arbitration

niranjan (Querist) 22 December 2011 This query is : Resolved
clause in unregistered partnership deed for referring the dispute to arbitrator.Retiring partner appoints one advocate as arbitrator and the firm or other partners do not give consent to that.What course is open to the firm or other partners i.e. non consenting party?

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M.Sheik Mohammed Ali (Expert) 22 December 2011
both of you abide by the terms and condition, so give full details.

Guest (Expert) 22 December 2011
It depends on the 'arbitration clause' of the partnership deed. In absence of a common consent among the partners (and if there is no provision made for it in the deed), approaching the court to appoint an arbitrator is the left-over option.

Devajyoti Barman (Expert) 22 December 2011
WHen there is arbitration clause the same can not be avoided unless you challenge the very validity of the agreement containing the arbitration clause.
Since some partners are not agreeing to appointment of arbitration then only option is file application u/s 11 of the Act before the High Court.

Advocate Bhartesh goyal (Expert) 22 December 2011
Yes if other partners do not agree with the proposed Arbitrator then you have only remady to file application before High Court to appoint arbitrator u/s 11{6} of Act.

Raj Kumar Makkad (Expert) 22 December 2011
Arbitrator should either be mutually agreed person of all partners or in case of dispute over the appointment of such person then better to get remedy under section 11 (6) of Arbitration and Conciliation Act.

Deepak Nair (Expert) 23 December 2011
I endorse the views of Mr. Barman, Mr. Goyal & Mr. Makkad

Sailesh Kumar Shah (Expert) 23 December 2011
Go ahead as advised by Mr. Barman, Mr. Goyal & Mr. Makkad.

Jai Karan Nagwan (Expert) 23 December 2011
Please not unregistered agreement will not be read in evidence, however would be considered for colletral purpose. no detail is given as to whether either party has approached to civil court. if either party has approached court that procedure for invoking the Arbitral clause depends on the stage of the case in the court.

presume neither party approached to civil court and one party propsed arbitrator and other party does not agree or not responsive, that persue section 11 of the act.

Guest (Expert) 23 December 2011
Agree with S/Shri Devajyoti and Makkad ji.

Sankaranarayanan (Expert) 23 December 2011
I do agree with mr makkad

prabhakar singh (Expert) 23 December 2011
A partnership agreement( the very deed)is not required to be registered but if the partnership firm it self is not registered with the registrar of firms and chit funds and societies then proposed petition under 11(6)of Arbitration Act would become barred by section 69(3)of Indian Partnership Act.If such is the circumstance of non registration then first get the firm registered only then move the petition desired under section11(6)of Arbitration Act.

niranjan (Querist) 24 December 2011
Thanks to all learned members.

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