Unregistered partnership bar under Section 69(3) extends to arbitration appointment proceedings enforcing contractual rights.

An application under Section 8(2) of the Indian Arbitration Act, 1940 to appoint an arbitrator was treated as a proceeding to enforce a contractual right arising from an arbitration clause, and was therefore hit by Section 69(3) of the Indian Partnership Act, 1932 where the partnership was unregistered. The expression "other proceeding" in Section 69(3) was construed broadly and was not confined by ejusdem generis to matters similar to a claim of set-off, because "claim of set-off" did not create a limiting genus. The bar under Section 69(3) thus extends to proceedings of any kind enforcing contractual rights, subject only to the section's express exceptions.

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Issues: Whether an application under Section 8(2) of the Indian Arbitration Act, 1940 for appointment of an arbitrator was barred by Section 69(3) of the Indian Partnership Act, 1932 in the case of an unregistered partnership.

Analysis: The proceeding under Section 8(2) had its origin in the arbitration clause and was therefore a proceeding to enforce a right arising from contract. The expression "other proceeding" in Section 69(3) was held not to be cut down by the preceding words "a claim of set-off". The statutory setting showed that the Legislature used "other proceeding" in a broad sense, and the doctrine of ejusdem generis could not be invoked because "claim of set-off" did not disclose a genus capable of restricting the general words. The bar in Section 69(3) thus extended to proceedings of any kind enforcing contractual rights, subject only to the express exceptions in the section.

Conclusion: The application under Section 8(2) was barred by Section 69(3), and the appeal succeeded.

Ratio Decidendi: The words "other proceeding" in Section 69(3) of the Indian Partnership Act, 1932 are of wide import and include any proceeding to enforce a contractual right, and they are not restricted by the doctrine of ejusdem generis to proceedings similar to a claim of set-off.

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