Summary
The Supreme Court remanded a challenge to arbitration proceedings arising from an unregistered partnership. The High Court had upheld rejection of a Section 69(3) Partnership Act objection without considering the binding decision in Krishna Motor Service. The Supreme Court required fresh consideration in light of that authority, expressly refraining from deciding the maintainability objection itself.
Issues
- Whether the High Court considered the relevant binding authority on the maintainability objection.
- Whether the Supreme Court should determine the substantive objection in the first instance.
Held
- The High Court was required to consider Krishna Motor Service v. H.B. Vittala Kamath when deciding the objection to the Section 20 Arbitration Act application founded on an unregistered partnership. Its omission warranted interference and remand. (¶ 12–15)
- The Supreme Court did not determine the factual or substantive merits of the maintainability question. The High Court was to decide afresh according to law, uninfluenced by observations in either the impugned order or the remand judgment. (¶ 16)
- Given the age of the dispute, disposal was requested expeditiously, preferably within six months. (¶ 17)
Result
Appeal allowed. High Court order set aside and writ petition remanded for fresh merits consideration in light of Krishna Motor Service, preferably within six months; substantive maintainability left open.