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2026 DAILYLAW 35185 (CAL)

RUPAK PAUL AND ANR v. Mrinal Kanti Bhunia

AP-COM/619/2026 · 2026-08-12

Gaurang Kanth

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

OCD-19 ORDER SHEET IN THE HIGH COURT AT CALCUTTA COMMERCIAL DIVISION ORIGINAL SIDE AP-COM/619/2026 RUPAK PAUL AND ANR VS Mrinal Kanti Bhunia BEFORE: The Hon’ble JUSTICE GAURANG KANTH Date : 12th August, 2026. Appearance: Ms. Meghla Das, Adv. Mr. Abhishek Saw, Adv. Mr. Sudeepto Kumar Basu, Adv. ..for the petitioner Mr. Aman Agarwal, Adv. Mr. Abhisehk Agarwal, Adv. Ms. Rupa Singh, Adv. ..for the respondent The Court: The petitioner has preferred the present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a learned sole Arbitrator to adjudicate the disputes and differences arising out of a Deed of Partnership dated 03.08.2022. Learned Counsel for the petitioners submits that the parties had entered into the aforesaid partnership deed for carrying on the business of running a restaurant, bar/pub and hotel under the name and style of “M/s. Empty Head”. According to the petitioners, the respondent failed to contribute the agreed working capital to the partnership business, withdrew money from the firm without the consent of the other partners and failed to devote time and effort towards the affairs of the partnership. It is further alleged that the respondent utilised the partnership business for personal benefit, thereby 2 causing substantial loss to the firm and compelling the petitioner to bear the operational expenses for the business. It is the case of the petitioners that Clause 15 of the said agreement contains an arbitration clause which was invoked by the petitioner by issuing a notice under Section 21 of the Act, dated 15.05.2026 whereby the petitioners nominated Mr. Ankit Chatterjee, Advocate, as the sole Arbitrator. Although the said notice was duly served upon the respondent, the respondent did not respond to the said notice nor took any steps for constitution of an Arbitral Tribunal within the prescribed period. Learned Counsel for the respondent submits that the present petition is not maintainable, as the partnership deed is unregistered, and that the petition is therefore barred under Section 69 of the Partnership Act, 1932. This Court has considered the material on record and the submissions advanced by counsel for both parties. The existence of the partnership deed is not in dispute, nor is the existence of the arbitration clause contained therein. The bar under Section 69 of the Partnership Act applies to the institution of a "suit" to enforce a right arising from a contract; a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 is a summary proceeding for appointment of an Arbitrator and does not partake of the character of a suit, and the bar under Section 69 is therefore not attracted. Since the petitioner had invoked the arbitration clause by issuing a valid notice under Section 21 of the said Act dated 15.05.2026, and the respondent had failed to take any steps for constitution of the Arbitral Tribunal, this Court is inclined to exercise its jurisdiction under Section 3 11(6) of the Arbitration and Conciliation Act, 1996. Accordingly, the application succeeds. Justice Subrata Talukdar (Retired) (Mobile No. 9830084805) is appointed as the learned sole Arbitrator to adjudicate all the disputes and differences arising out of and in context of the Partnership Deed dated 03.08.2022. The learned Sole Arbitrator shall enter upon the reference after making the disclosure in terms of Section 12(1) of the Act and subject to the provisions of Section 12(5) thereof. The learned sole Arbitrator shall be entitled to fix the remuneration in accordance with the Fourth Schedule of the Act or as may be mutually agreed between the parties. A copy of this order shall be communicated by the petitioner to the learned sole Arbitrator for necessary action. It is clarified that all questions relating to the arbitrability of the disputes, the admissibility of the claims, limitation, jurisdiction, and all other issues are left open to be urged before the learned Sole Arbitrator, who shall decide the same in accordance with law. With the aforesaid directions, the present petition stands disposed of. (GAURANG KANTH, J.) bp.