TMI Blog1970 (9) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into an agreement to carry on in partnership three businesses (1) Messrs F.D. Mehta Company; (2) The Great Western Stores; and (3) Dr. Writer's Chocolates and Canning Company. The relevant terms of the deed of partnership were as follows : 1. The agreement has come into effect from the 2nd day of November 1966. 3. The duration of the partnership shall be at will. 7. The net profits of the partnership after payment of all the outgoings incidental to the partnership business shall belong to the partners in equal shares and they shall likewise bear all losses including loss of capital. 15. All disputes and questions whatsoever which shall either during the partnership or afterwards arise I between the partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that having regard to the attitude adopted by the appellant there was no alternative left but to have a legal arbitration , and that Mr. K.M. Diwanji Solicitor of the High Court of Bombay was nominated an arbitrator by the respondent, and the appellant was called upon to nominate his arbitrator so that the disputes and differences between the parties may be resolved by the partnership deed. This request was repeated in a letter dated June 14, 1968. By his reply dated June 26, 1968 the appellant denied the agreement and without prejudice to his contention nominated Mr. J.B. Maneckji as arbitrator. He simultaneously intimated that if the arbitrators seek to arbitrate on the issue of the alleged agreement of the appellant to go out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ip agreement had no application; (2) that the claim made by the respondent relating to the agreement dated January 17, 1968 was not a claim which arose out of the deed of partnership; (3) that the dispute related to an agreement complete independent of the deed of partnership and consequently it fell outside the ambit of the arbitration clause contained in Clause 15 of the deed of partnership; and (4) that in any event the umpire could not grant specific performance of the agreement. The learned Judge rejected all the contentions and dismissed the petition. With special leave, the appellant has appealed to this Court. 6. There were only two partners who agreed to carry on the business in partnership. Under the agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partnership. When the partnership consisted of only two partners and one partner agreed to retire, there can be no doubt that the agreement that one of the partners will retire amounts to dissolution of the partnership. 8. The argument that the agreement dated January 17, 1968 supersedes the partnership agreement dated December 22, 1966, including the arbitration clause is, in our judgment, futile. The agreement set up by the respondent while maintaining its covenants seeks to dissolve the partnership and to settle the rights and obligations of the partners arising out of the dissolution of the partnership. 9. It was not urged that the arbitrator was incompetent to direct that the appellant shall carry out the terms of the agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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