Ashutosh Rajput | Hidayatullah National Law University | 15th May 2020<\/p>\n\n\n\n
Prem Lata v. Ishar Dass Chaman Lal\u00a0[1995] INSC 30<\/strong><\/p>\n\n\n\n Facts:<\/u>\u00a0<\/strong><\/p>\n\n\n\n M\/s Ishar Dass Chaman Lal was a partnership firm consisting of Ishar Dass, Chaman Lal, and Om Prakash. The firm was not registered under section 69 of Partnership Act, 1932. The eldest son Chaman Lal died on 6.3.1978 due to which the partnership stood dissolved. The widow and the son of deceased Chaman Lal was called upon the respondents to render accounts of the firm. The respondent did not do so. Therefore, they were called to arbitration by invoking clause 16 of the partnership deed and, subsequently, the respondent refused to refer the dispute to arbitrator hence, the appellant invoked the jurisdiction of the \u2018civil court\u2019 under section 20 of the partnership deed. The respondent contended that since the partnership firm was unregistered therefore, the application under section 20 would not lie. The trial court navigated the contention of the respondent but on appeal the High Court held that the suit is non-maintainable due to its non-registration. Hence, the appellant filed the appeal before Hon\u2019ble Supreme Court.<\/p>\n\n\n\n Issue:<\/u><\/strong>\u00a0<\/p>\n\n\n\n Whether the suit filed under section 20 of the partnership deed is maintainable with respect to section 69 of the partnership act?<\/p>\n\n\n\n Arguments:<\/u><\/strong><\/p>\n\n\n\n By the appellant: <\/p>\n\n\n\n By the respondent: <\/p>\n\n\n\n Judgment:<\/u>\u00a0<\/strong><\/p>\n\n\n\n Section 69(3) enshrines that (1)(2) shall also apply to a claim of set-off or other proceeding to enforce a right arising from a contract and the word \u2018other proceeding\u2019 will include wide aspect of proceedings in its ambit. Therefore, there is no embargo for filing a suit under section 20 of the deed. Hence, the suit under section 69 is maintainable. The appeal is allowed.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" Ashutosh Rajput | Hidayatullah National Law University | 15th May 2020 Prem Lata v. Ishar Dass Chaman Lal\u00a0[1995] INSC 30 Facts:\u00a0 M\/s Ishar Dass Chaman Lal was a partnership firm consisting of Ishar Dass, Chaman Lal, and Om Prakash. The firm was not registered under section 69 of Partnership Act, 1932. The eldest son Chaman […]<\/p>\n","protected":false},"author":167,"featured_media":1664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[66,34,26],"tags":[],"yoast_head":"\n