Enforcement of Arbitration Clause by an Unregistered Firm
By
Prof. Ram Naresh Prasad Choudhary
Under Section 69(1) of Indian Partnership Act no suit can be filed by one partner of a firm against another partner to enforce a right arising from a contract unless the firm is registered. The same bar is intended by S. 69(3) to another proceedings to enforce a right arising from a contract.
The question is whether a petition under S. 20 of the Arbitration Act is a proceeding to enforce a right arising from a contract as between the two partners of an admitted unregistered firm. Does it come under the purview of above mentioned section of the Indian Partnership Act?
This question arise in a latest case Chandulal Hathibhai Shah v. Champak Lal Ambalal Parikh, AIR 1994 Bom 16 before the Division • Bench of Bombay High Court. In this case the appellant and the respondent entered into a deed dated 1-1-1979 of Partnership under which they agreed to carry on business in yarn as Commission Agents in partnership in the firm name and style of M/ s. C. H. Shah & Co, T ....