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Issues involved: Dismissal of Interlocutory Application to refer the matter to Arbitral Tribunal.
Summary: Issue 1: Dismissal of Interlocutory Application The suit was filed by the respondents against the revision petitioner for a declaration that the petitioner is not a partner of the firm and for an injunction. The revision petitioner sought to refer the matter to arbitration as per the Partnership Deed, but the application was dismissed by the court. The revision petitioner argued that the dispute should be settled by arbitration as per the agreement, but the respondents approached the civil court instead. The court noted that consensus of all partners is necessary to refer the matter for arbitration, and the revision petitioner expressed willingness for arbitration only after being expelled from the firm. The court also found that the relief sought for by the respondents, namely the declaration, falls under the jurisdiction of the civil court and not arbitration. Issue 2: Compliance with Arbitration Clause The court held that the revision petitioner did not comply with the mandatory provision of filing the Original Arbitration Agreement or a certified copy thereof. The court also referred to a previous judgment stating that the mere existence of an arbitration clause does not prevent the civil court from proceeding with the suit, especially if the dispute involves serious questions of law or complicated facts requiring detailed evidence. The court emphasized that the right to invoke the court's protection is inherent, and the civil court can refuse to refer the matter to arbitration in certain circumstances, such as when serious allegations of fraud or misrepresentation are made. Conclusion: The court dismissed the Civil Revision Petition and the connected Miscellaneous Petition, finding no illegality or irregularity in the dismissal of the Interlocutory Application. No costs were awarded in the case.
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