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ANAND PANDEY   13 July 2021

arbitration issue

there is a dispute in partnership firm and a clause of arbitration is there in the deed
the retired partner had asked the ongoing partner for arbitration but they have said they are short of fund
now what can be done


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 4 Replies

Shubham Bhardwaj (Advocate)     13 July 2021

Dear Mr Pandey, 

I am assuming that your question is from the point of view of retiring partner.  If a valid arbitration clause exists in an agreement, then the retiring partner can send notice for initiating arbitration and appointment of arbitrator in accordance with the agreement. In case the other party refuses, an application can be filed in the principal civil court of original jurisdiction for appointment of arbitrator. Once the arbitrator is appointed, the arbitration proceedings will begin. 

 

Regards

Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh.

 

Disclaimer:- Opinion is only for guidance. 

1 Like

ANAND PANDEY   13 July 2021

Yes sir
we have send a notice to the partner for invitation of arbitration but they refused by saying they are not having fund for arbitration and the retiring partner have to bear all cost

Dr J C Vashista (Advocate)     14 July 2021

Apply to the Civil Court of jurisdiction for appointment of arbitrator as per terms of partnership.

Availability or short of funds has no relevance to invoke arbitration clause and getting appointment of arbitrator,

G.L.N. Prasad (Retired employee.)     14 July 2021

Simply file Pre-litigation conciliation petition before District Legal Services Authority and make an attempt for a compromise.


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