JUDGEMENT
Amar Bir Singh Gill, J. -
(1.) The plaintiff-
petitioner filed a suit for dissolution of the firm
and rendition of accounts claiming that under
the registered partnership deed with defendant-respondents No. 1 & 2. it was agreed that
the partnership was at will and upto 30.9.1998
and all partners had mutually settled their accounts till that date and thereafter
the business of the concern was being conducted and
supervised by defendant-respondent No.2
through her husband defendant-respondent
No.3 and all the books of accounts were also
being maintained by defendant-respondents
No. 2 and 3, are now in their custody and
they are the accounting parties. After
30.9.1998, defendant-respondents No.2 & 3
opened another account in the name of the
firm with the Punjab National Bank, Arya
Chowk, Bathinda without the consent of the
plaintiff-petitioner and earlier the account of
the firm was opened with Canara Bank and
the same was being operated jointly as per
terms of the partnership deed. The business
of the firm is being run by defendant-respondent No. 3 who is not a partner of the firm and
he along with defendant-respondent No. 2 are
keeping the custody of entire books of the firm
with the purpose of depriving the plaintiff-petitioner of the actual account i.e. profit and
loss account of the firm besides defendant-respondent No. 3 has also started claiming to be
the sole proprietor of the firm. These defendant-respondents No. 2 & 3 have again changed
the bank account and opened the same with
Bank of India without allowing any access to
the account books and rendition of the accounts of the firm to the plaintiff-petitioner and
inspite of the request of the petitioner, the
defendant-respondents have not dissolved the
firm so far compelling him to file a suit for
dissolution of the firm and rendition of the
accounts.
(2.) Defendant-respondents No. 2 & 3 filed
an application under Section 34 of the Arbitration Act seeking the stay of
further proceedings in view of clause 9 of partnership
deed by which dispute between the parties was
to be referred to the arbitration. It was further
claimed that the dispute ought to have been
referred firstly to an Arbitrator to be appointed
by the parties according to clause 9 of the partnership deed but instead of referring
the matter to the arbitration, the plaintiff-petitioner has
initiated the legal proceedings in contravention of the arbitration clause. The defendants
further claimed that at the time when the proceedings were commenced they were and are
still ready and willing to do all things necessary
for the proper conduct of the arbitration between the parties. The application was opposed
by the plaintiff-petitioner claiming that defendant respondent No.3 had no locus standi to
seek the stay of further proceedings under
section 34 of the Arbitration Act being not a party
to the partnership. The plaintiff petitioner admitted the existence of arbitration clause 9 in
the agreement. However, he claimed that he
is not estopped from filling the suit in view of
the circumstances and the facts alleged in the
same. The civil Court can well adjudicate upon
the rights between the parties and-if so considered, the Court can appoint an Arbitrator.
The suit, being not in violation of the terms
with regard to the arbitration is maintainable
besides the defendant-respondents No. 2 & 3
were never ready and willing as alleged and he
prayed for the dismissal of the application.
(3.) Learned trial Court, after hearing the
counsel for the parties and being satisfied, held
that it was not a case where the arbitration
clause provided reference of dispute to any
particular arbitrator or the manner in which
the arbitrator can be appointed. The suit, being for dissolution of the firm and rendition of
accounts, can not be stayed in view of the
vagueness of the arbitration clause and, thus,
the application filed by defendant-respondents
No. 2 & 3 was dismissed.;
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