1984 (8) TMI 357

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....utes settled through arbitrators and hence, the dispute in the present suit should be referred to the arbitrators and the suit be stayed. The plaintiffs contested the suit. The trial Court framed the following issues:-- (1) Whether there is valid and subsisting agreement between the parties relating to the subject matter of the dispute? OPA (2) If issue No. 1 is proved whether the proceedings in the suit are liable to be stayed ? OPD (3) Relief. After evidence was led, the trial Court by judgment dt. 29-5-1976, allowed the application of the defendant and stayed the suit after giving findings on all the issues in favour of the defendant. This is plaintiff's appeal. 2. After hearing the learned counsel for the parties I am of th....

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....moment a suit is filed for dissolution of partnership, a partnership at will stands dissolved merely by filing of the suit. Since the instant partnership was a partnership at will, the trial Court followed the observations in the aforesaid judgment and held that by filing of the suit, the partnership stood dissolved and, therefore, S. 44(g) of the Partnership Act could not be relied upon by the plaintiffs to seek dissolution of partnership through Court on just and equitable grounds. Firstly, the learned counsel for the plaintiffs urged that the facts of the aforesaid decision were distinguishable and secondly, he argued that it was not a correct decision in view of the judgment of the Supreme Court in Banarsi Das v. Kanshi Ram, AIR 1963 SC....

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....those other than at will; but there are no limitations in this provision confining its operation only to partnerships other than those at will". The aforesaid passages were relied upon by a Division Bench of this Court in Khushi Ram Behari Lal & Co.'s case (supra) and it was ruled that dissolution of partnership would take place under O. 20, R. 15 of the Civil P. C. even if it is at will and form a date fixed in the preliminary decree, unless the partnership is dissolved under S. 43 of the Partnership Act. Admittedly, in the present case partnership was not dissolved under S. 43 of the Partnership Act and the plaintiffs straightway filed a suit for dissolution of partnership. Therefore, it is clear that some observations contained in....