Subsisting arbitration clause in partnership deed supports successive reference for later disputes and appointment of arbitrator.

A wide arbitration clause in a partnership deed was treated as continuing to subsist despite an earlier award and later memoranda, because the parties had continued under the same partnership arrangement and had previously invoked the same clause. Correspondence between them was also treated as evidence of an arbitration agreement under section 7(4)(b) of the Arbitration and Conciliation Act, 1996. As the later disputes were distinct from the earlier reference, a successive reference was permitted and the objection to maintainability was rejected. An arbitrator was appointed under section 11(6) for adjudication of the disputes.

---

---

Issues: Whether the arbitration agreement contained in the partnership deed continued to subsist notwithstanding the earlier arbitral award and subsequent memoranda, and whether the disputes raised were capable of being referred to arbitration by way of a successive reference under the same clause.

Analysis: The arbitration clause in the partnership deed was held to be wide enough to cover disputes concerning profit-sharing, accounts, withdrawal of capital and other matters connected with the partnership. The earlier award did not extinguish the arbitration clause, because the parties had continued the business under the same partnership arrangement and the respondent had himself earlier invoked the same deed and arbitration mechanism. The subsequent correspondence between the parties also evidenced an arbitration agreement within the meaning of section 7(4)(b) of the Arbitration and Conciliation Act, 1996. The disputes sought to be raised in the present proceeding were held to be separate from the earlier reference, making successive reference permissible.

Conclusion: The arbitration agreement was found to be subsisting and enforceable, and the disputes were held referable to arbitration. The respondent's objection to maintainability was rejected.

Final Conclusion: The application under section 11(6) succeeded and an arbitrator was appointed on behalf of the respondent for adjudication of the disputes between the parties.

Ratio Decidendi: A subsisting and wide arbitration clause in a partnership deed may support successive references for fresh disputes arising later between the same parties, and such an agreement may also be evidenced by correspondence between them.

---