Arbitrator cannot properly deal with malpractice allegations

The Supreme Court (SC) has stated when there are serious allegations of malpractices and manipulation of accounts of a firm, the dispute cannot be properly dealt with by an arbitrator. It would be appropriate to let the civil court decide. In this case, N Radhakrishnan vs M/s Maestro Engineers, partners in the firm split and one of them wanted his share to be paid after resignation. However, there were disputes on the amounts due. The partner wanted arbitration which was denied by the district court. He appealed to the SC which dismissed his plea. It said when there are allegations of manipulation of accounts, fraud, misrepresentation and similar charges, it would not be proper to refer all these to an arbitrator. Therefore, the case was remitted to the civil court in Coimbatore.