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vishal p   22 June 2020

Arbitration

My business is under a partnership deed since 1999.3 out of seven partners have died.There is no mutual agreement now a days.One of the partners daughters have filed an arbitration. She is not a signatory to the partnership deed.
The partner ship deed clearly states that one the death of onebof the partners the business shall continue and the descendants of the dead partner can be brought into the partnership deed IF rest of the partners mutually agree to.
the majority do not agree.
Being a non signatory to the deed, is she entitled to arbitration


 3 Replies

Nihal Thareja   22 June 2020

Hello sir,

The answer is No, the daughter of the partner cannot file for arbitration as she is not a party to the partnership deed.
Further Section 8 of the Arbitration and Conciliation Act 1996, provides for the power of the Judicial authority to refer the parties to arbitration only when they are parties to the agreement. No third party can be made a party to the suit 

In Sukanya Holdings case, The Supreme Court has clearly laid down that any person who was not a party to the arbitration agreement could not be brought into the arbitration.

 

Hope i was able to solve your query
Thanks & Regards
Nihal

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