Section 69 Partnership Bar Exception: dissolution and accounting claims by an unregistered firm can still proceed in arbitration.

Section 69 of the Partnership Act, 1932 bars certain claims by or on behalf of an unregistered firm, and that bar extends to arbitration proceedings. However, the statutory exception in Section 69(3)(a) preserves proceedings for dissolution of a firm and for accounts of a dissolved firm. On the stated facts, the reference to arbitration concerned dissolution and accounting, so the proceeding fell within the exception and was not hit by the registration bar. The challenge to maintainability therefore failed, and the writ petition was dismissed.

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Issues: Whether a petition seeking reference to arbitration for dissolution of an unregistered firm and accounting was barred by Section 69 of the Partnership Act, 1932.

Analysis: The bar under Section 69(1) and (2) of the Partnership Act, 1932 extends to arbitration proceedings, but the exception in Section 69(3)(a) applies where the proceeding is to seek dissolution of a firm and accounts of a dissolved firm. Since the proceedings were found to be for dissolution of the firm and accounting, they fell within the statutory exception.

Conclusion: The challenge to maintainability failed, and no legal error was found in the impugned order.

Final Conclusion: The writ petition was dismissed after upholding the order that treated the proceedings as covered by the exception under Section 69(3)(a) of the Partnership Act, 1932.

Ratio Decidendi: A proceeding for dissolution of a firm and accounting of its affairs is saved by the exception in Section 69(3)(a) of the Partnership Act, 1932, even if the firm is unregistered, and the bar under Section 69(1) and (2) does not defeat such proceedings.

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