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Enforcement of Arbitration Clause by an Unregistered Firm

By Prof. Ram Naresh Prasad Choudhary

Published In

Air 1997

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 ....

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