Broad arbitration clause covers partnership dissolution claim where disputes arise from breakdown of trust between partners.

Where a consent reference and partnership deed submitted all disputes between partners to arbitration, the reference was construed broadly and not narrowly so as to exclude a counter-claim for dissolution. The Court held that a claim for dissolution may arise from the same relationship and dispute matrix as the original proceedings, and that strained relations and breakdown of mutual trust and confidence can support such a claim. It further held that there is no rule of law preventing an arbitrator from deciding whether a partnership should be dissolved when the arbitration clause is wide enough to cover all partner disputes. The arbitrator therefore had jurisdiction to entertain the counter-claim.

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Issues: Whether, on the terms of the consent reference and the partnership deed, the arbitrator had jurisdiction to entertain and decide the counter-claim seeking dissolution of the partnership firm.

Analysis: The dispute was referred to sole arbitration broadly in relation to the parties' rights and obligations arising out of the agreement, the retirement deed, the use of trade marks, and the determination of the first respondent's rights as a partner. The partnership deed itself contemplated reference of all disputes and questions in connection with the partnership to arbitration, and the Court held that the reference was not to be read narrowly so as to exclude a claim for dissolution. It was further held that a partner's claim for dissolution can arise from the same relationship and dispute matrix that gave rise to the original suit, and the existence of strained relations and breakdown of mutual trust and confidence could support such a claim. The Court also held that there is no rule of law barring an arbitrator from deciding whether a partnership should be dissolved where the reference is wide enough to cover all disputes between the partners.

Conclusion: The arbitrator had jurisdiction to consider the counter-claim for dissolution of the partnership, and the challenge to the High Court's view failed.

Ratio Decidendi: Where the arbitration clause or reference is wide enough to submit all disputes between partners, the arbitrator may decide a claim for dissolution of the partnership, including disputes based on breakdown of mutual trust and confidence.

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