Notice invoking the arbitration u/s 21 of Arbitration and Conciliation Act, 1996, by one of the parties to the agreement would be a sufficient compliance of the statutory provision | On the dissolution of a partnership firm, the arbitration clause does not come to an end | Pendency of a civil and criminal litigation inter se partners, cannot estop one of the partners from invoking the arbitration clause – Prikshit Wadhwa and Ors. Vs. Vinod K Wadhwa – Punjab & Haryana High Court
January 21, 2025
The Hon’ble Punjab & Haryana High Court held that: (i) Section 21 of Arbitration Act does not require the notice to be served by all the parties to the agreement. Notice by one of the parties to the agreement would be a sufficient compliance of the statutory provision. The giving of such a notice is purely procedural and not a decisive step. (ii) The legal representative of a deceased-partner has a right to enforce an arbitration agreement. (iii) On the dissolution of a partnership firm, the arbitration clause does not come to an end. (iv) Pendency of a civil and criminal litigation inter se partners, cannot estop one of the partners from invoking the arbitration clause or bar the reference of dispute for adjudication to an arbitrator for determination