Whether Arbitral Tribunal can deal with the issue of winding up and act as Liquidator to liquidate the assets and liabilities of a partnership firm? and whether winding up of a partnership firm amounts to liquidation of the partnership firm? – R.Subbulakshmi (deceased) Vs. R.Venkitapathy (deceased) – Madras High Court
In this important judgment, Hon’ble High Court has clarified important issues:
(i) Whether the Arbitral Tribunal have jurisdiction to adjudicate the issue of dissolution of firm in terms of the provisions of Partnership deed?
(ii) Is winding up of the partnership firm, the same as dissolution of the partnership firm?
(iii) Whether the winding up of the partnership firm amounts to liquidation of the partnership firm?
(iv) Whether the Arbitral Tribunal can deal with the issue of winding up and act as Liquidator to liquidate the assets and liabilities of the partnership firm?
(v) Whether the Tribunal can adjudicate the interest/claim of the third parties in the arbitration proceeding in the absence of any agreement with the third parties?
(vi) Whether the Tribunal can adopt the method and decide on their own in equities, fairness and conscience when the partnership deed do not provide the method of winding up nor any other agreement between the parties to permit the Tribunal to act as amiable compositor by following a method of winding up and distribution of assets of its own choice and on equity?
