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2012 (5) TMI 814 - HC - Indian Laws

Issues Involved:
The judgment addresses the maintainability of a suit under Section 20 of the Arbitration Act filed by a petitioner-defendant against a plaintiff regarding the dissolution of an undissolved firm and accounting.

Maintainability of Suit under Section 20 of Arbitration Act:
The petitioner argued that the suit was not maintainable as the firm was unregistered and not dissolved, relying on Section 69 of the Partnership Act, 1932, and the Supreme Court decision in Jagdish Chandra Gupta Vs. Kajaria Traders (India) Ltd. The Court found that the suit was filed for arbitration to consider the dissolution of the firm and accounting. It was noted that if the suit is filed for accounting and dissolution of the firm, both issues can be addressed together. The Court held that the exceptions provided in Section 69(3) of the Act, 1932, apply to arbitration proceedings, and since the suit was filed for appointing an arbitrator to consider the dissolution of the firm and accounting, it falls under the exception (a) of Section 69(3). Consequently, the Court found no legal error in the order and dismissed the petition.

 

 

 

 

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