Arbitration agreement
mohit bhardwaj
(Querist) 01 August 2012
This query is : Resolved
There is a unregistered partnership agreement between two partners and no such arbitration clause in said agreement. later on one of the partner signed a separate arbitration clause but it not contains second partners signatures. what is the validity of such agreement ??????
ajay sethi
(Expert) 01 August 2012
Under the Act, registration of firm is not mandatory. It is utterly on the will of the partners to get it registered with the Registrar of the Firm or not to do the same.Section 69 of the Act rpovides that a partnership firm can be sued but cannot sue . The bar on suits should be restricted only to suits in respect of rights arising out of contracts entered in the course of business
if there is no arbitration clause then in event of disputes it cnanot be referred to arbitration .
section 19(2)provides that implied authority of partner to bind the firm does not empower him to -
a) Submit a dispute relating to the business of the firm to
arbitration.
prabhakar singh
(Expert) 01 August 2012
what is the validity of such agreement ??????
ANSWER: NOT BINDING ON THOSE WHO HAVE NOT SIGNED IT.