HC held disputes between partners of LLP and the LLP itself are ...

Limited Liability Partnership Disputes Arbitrable Under LLP Agreement Even When LLP Not Direct Signatory to Agreement

March 5, 2025

Case Laws     Indian Laws     HC

HC held disputes between partners of LLP and the LLP itself are arbitrable under the arbitration agreement in LLP Agreement, even when LLP is not a signatory. The First Schedule's provisions govern mutual rights and duties between LLP and partners, with Item 14 mandating arbitration for partner disputes. The dispute concerning partner expulsion necessarily involves examining injury to LLP's interests, making LLP a necessary party to arbitration proceedings. Court rejected respondents' objection that LLP was extraneous to LLP Agreement as untenable and frivolous, noting these objections appeared aimed at delaying arbitration. Application under Section 11 of Arbitration Act was disposed of, affirming arbitrability of the dispute including LLP as party.

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