L RAGHUNATH PRASAD Vs. L GURDYAL PRASAD
LAWS(ALL)-1955-9-46
HIGH COURT OF ALLAHABAD
Decided on September 27,1955

L.RAGHUNATH PRASAD Appellant
VERSUS
L.GURDYAL PRASAD Respondents

JUDGEMENT

Brij Mohan Lal, J. - (1.) THIS is an appeal by the plaintiffs whose suit for dissolution of a partnership, for accounts and for damages has been dismissed by the learned Civil Judge of Agra.
(2.) THE parties had entered into a partnership and had executed a lengthy document as the partition deed. Para 49 of the said document, which is the most material paragraph of the said deed for the purpose of this suit, runs as follows: "All the partners shall work amicably and with co-operation. If, God forbid, any dispute arises, it shall be settled by a 'Panchayat' out of Court and Lala Lallomal, Lala Ramdayal and Lala Ganpat Lal snail be appointed as arbitrators and no suit shall be filed. In case any suit is filed it shall be fit to be dismissed. If any of the said arbitrators is not able to act as an arbitrator in respect of anything on account of some proper reason, some other proper arbitrator shall be appointed in his place." The suit was resisted by the respondents but they did not ask for its stay under Section 34, Arbitration Act (10 of 1940). They filed a written statement and went to trial but contended that, in view of the aforesaid paragraph of the deed of partition, the suit was not maintainable. This plea found favour with the learned. Civil Judge who dismissed the suit with costs. His findings may be quoted in his own words as follows: "In the present case, I have come to the conclusion that even though the plaintiff has got a right of dissolution as provided under para 17 of the arbitration agreement his remedy was by means of arbitration as provided in para 49 of the Partnership Agreement. The parties by the terms of this para have agreed that no suit shall be filed and the parties will only have recourse to arbitration. As such the present suit which is for dissolution and for accounts and to claim compensation for the acts done by the manager is covered within the term 'dispute' mentioned in para 49 and the proper remedy of the plaintiff was by arbitration and not filing the present suit."
(3.) DISSATISFIED with this decision the plaintiffs have come in appeal and the only point that arises for decision before us is whether the suit was maintainable in the learned Civil Judge's Court.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.