2007 (1) TMI 630

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.... with effect from1 8.11.2005 and for consequential injunction restraining the petitioner from disturbing the smooth functioning of the first respondent firm. Admittedly there was estrangement between the partners as to the running of the partnership firm. According to the respondents, the revision petitioner did not concentrate much on the business and administration of the first respondent's partnership firm but he has been concentrating much on his family business run under the name and style of M/s. Qawn Knitting. Since the revision petitioner wrote to the Banks about the possible expulsion as partner from the said firm, the Banks stopped to honour the cheques issued by the firm which resulted in standstill of the financial activitie....

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....ference of opinion arises among the partners during the continuance of the partnership business or termination thereof, such a difference or dispute shall be settled by Sole Arbitrator, if the partners agrees thereof, and if that is not possible arbitrators may be arranged in accordance with the provisions of the Indian Arbitration Act. But in total violation of the terms and conditions of the agreement, the respondents approached the civil Court which is not permissible. 5. A reading of the Clause 15 of the Partnership Deed itself would show that if any difference of opinion arises among the partners during the continuance of the partnership business or termination thereof, such a difference or dispute shall be settled by Sole Arbitrato....

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.... disputes. 7. In this case as rightly held by the trial Judge, the revision petitioner has not complied with even the mandatory provision of Section 8(2) of the Act by filing the Original Arbitration Agreement or a duly certified copy thereof and on this ground also the application is liable to be rejected. 8. Learned Counsel for the respondents placed reliance on the judgment of this Court in Oomor Sait HG v. O. Asiam Sait reported in 2001 (3) CTC 269 wherein it has been held thus: Mere existence of Arbitration Clause does not create an embargo on civil court to continue proceeding pending before such court. Power of civil court to refuse to stay of suit in view of Arbitration clause on existence of certain grounds available under....