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(1) HARYANA STATE AND ANOTHER. ..... Vs. GRAM PANCHAYAT VILLAGE KALEHRI .....Respondent D.D 29/06/2016

Facts:The respondent, Gram Panchayat of village Kalehri, filed a suit against the State of Haryana claiming ownership of a piece of land.The Trial Court decreed the suit in favor of the respondent.The State of Haryana appealed, but both the first appellate court and the High Court upheld the Trial Court's decision.The High Court, while dismissing the second appeal, held that there were no sub...

REPORTABLE # CIVIL APPEAL NO. 2516 OF 2008. Docid 2016 LEJ CIVIL SC 402009

(2) JAGDISH ..... Vs. STATE OF HARYANA .....Respondent D.D 29/06/2016

Facts:The case involves a free fight between two sets of relatives, leading to the death of Zile Singh and injuries to others.Appellant (Jagdish) was convicted by the Trial Court, and the High Court upheld the decision.Issues:The appellant challenged the conviction on various grounds, including the lack of evidence, improper appreciation of evidence, absence of blood stains at the spot, and allege...

REPORTABLE # CRIMINAL APPEAL NO. 411 OF 2008. Docid 2016 LEJ CRIM SC 287667

(3) JAMNADAS ..... Vs. STATE OF M.P. .....Respondent D.D 29/06/2016

Facts: Provide an overview of the case, including the murder of a young bride within six months of marriage, the gruesome disposal of the body, and the witnesses claiming to have seen one of the accused throwing the body in the park.Issues: The circumstantial evidence presented, the common intention of the accused, and the burden of proof in a murder case committed in secrecy within a house.Held: ...

REPORTABLE # CRIMINAL APPEAL NO. 156 OF 2015. Docid 2016 LEJ CRIM SC 266522

(4) KALIDAS CHUNILAL PATEL (DEAD) BY L.RS. ..... Vs. SAVITABEN AND OTHERS .....Respondent D.D 29/06/2016

Facts:The suit involves a dispute between the landlord (appellant) and the tenant (respondent) over a property in Bharuch, Gujarat.The appellant inherited the property through a will and sought eviction of the tenant based on non-payment of rent and personal need for residence.The trial court passed a money decree and eviction order in favor of the landlord.The appellate court affirmed the finding...

REPORTABLE # 29_JUN_2016_ CIVIL APPEAL NO. 5674 OF 2007. Docid 2016 LEJ CIVIL SC 615179

(5) MAHIMAN SINGH ..... Vs. STATE OF UTTRAKHAND .....Respondent D.D 29/06/2016

Facts:Information received about Charas transportation in a jeep.Search and seizure conducted in the presence of a gazetted officer.Appellant, Mahiman Singh, arrested and convicted under Section 20 of the NDPS Act.Appellant challenged the conviction, citing lack of evidence and non-compliance with NDPS Act requirements.Issues:Sufficiency of evidence to sustain the conviction.Compliance with NDPS A...

REPORTABLE # CRIMINAL APPEAL NO. 957 OF 2015. Docid 2016 LEJ CRIM SC 177753

(6) M/S. EMM ENN ASSOCIATES ..... Vs. COMMANDER WORKS ENGINEER AND OTHERS .....Respondent D.D 29/06/2016

Facts:Appellant was awarded a contract in 1998 and completed the work in 2000.Final payment was received on April 10, 2001.Appellant claimed the payment covered only the undisputed part and raised disputed claims in a notice sent in 2005.Chief Justice of Punjab and Haryana High Court dismissed the appellant's application under Section 11.Issues:Whether the claim raised by the appellant was a ...

REPORTABLE # CIVIL APPEAL NO. 7184 OF 2008. Docid 2016 LEJ CIVIL SC 608058

(7) M/S. MADURA COATS LIMITED ..... Vs. M/S. MODI RUBBER LTD. AND ANOTHER. .....Respondent D.D 29/06/2016

Facts:Madura Coats filed a winding-up petition against Modi Rubber, alleging an inability to pay undisputed debts.After adjournments, the Company Court passed a winding-up order on March 12, 2004.Modi Rubber appealed, claiming a reference to BIFR under SICA.Issues:Whether the provisions of SICA prevail over the Companies Act when a reference is made to the BIFR.Held:Different situations discussed,...

REPORTABLE # CIVIL APPEAL NO. 1475 OF 2006. Docid 2016 LEJ CIVIL SC 597164

(8) M/S. SUNDARAM FINANCE LIMITED ..... Vs. NOORJAHAN BEEVI AND ANOTHER .....Respondent D.D 29/06/2016

Facts:The plaintiff-appellant, a public limited company, entered into a hire-purchase agreement on 20.09.1983, financing an amount of Rs. 1,47,000 for a commercial vehicle.The hirer, the first defendant, defaulted on payments from 20th May 1984.The plaintiff seized the vehicle on 9th February 1985 and demanded settlement within 10 days.The vehicle was sold on 30th May 1985, and the plaintiff sough...

REPORTABLE # CIVIL APPEAL NO. 7245 OF 2008. Docid 2016 LEJ CIVIL SC 624242

(9) M/S UMESH GOEL ..... Vs. HIMACHAL PRADESH COOPERATIVE GROUP HOUSING SOCIETY LTD. .....Respondent Section Acts, Rules, and Article Mentioned: Section 69(3): Partnership Act, 1932 Section 9: Arbitration and Conciliation Act, 1996 Limitation Act, 1963 Interest Act, 1978 Subject: The interpretation and application of Section 69(3) of the Partnership Act, 1932, particularly concerning the scope of the ban imposed on unregistered firms and its applicability to arbitral proceedings. Headnotes: Facts: The case involves MIS Umesh Goel (Appellant) against Himachal Pradesh Cooperative Group Housing Society Ltd. (Respondent). The dispute centers on the ban imposed under Section 69 of the Partnership Act, specifically focusing on whether this prohibition extends to arbitral proceedings. Issues: The interpretation of Section 69(3) of the Partnership Act, determining whether the ban against unregistered firms applies to arbitral proceedings. The court explores the scope and ambit of the provision, considering the expressions "other proceedings" and their intrinsic connection with suits. Held: The court holds that the ban imposed under Section 69(3) does not extend to arbitral proceedings or arbitration awards, distinguishing them from civil proceedings or suits.[Para 10 and 11] Subsections (1) and (2) of Section 69 are impliedly incorporated into subsection (3), and a claim of set off or other proceedings must be intrinsically connected to the initiation of a suit.[Para 20] The condition precedent for the ban to operate is the initiation of a suit in a court by an unregistered firm or a person claiming to be a partner, coupled with a claim for set off or other proceedings intrinsically connected with the suit.[Para 13 and 14] Specific exclusions in sub-clauses (a) and (b) of subsection (3) clarify that certain proceedings, even if intrinsically connected with a suit, are not affected by the ban.[Para 15] The term "Court" in the Partnership Act is not defined, and the court refers to Section 2(e) of the Arbitration and Conciliation Act, 1996, for clarification.[Para 21 and 26] Arbitral proceedings are not treated as civil proceedings under Section 69(3), and interpretations under the Limitation Act, Arbitration and Conciliation Act, or Interest Act are deemed inapplicable.[Para 32] Importing the definition clause of "Court" from the Interest Act to apply Section 69(3) is considered inappropriate.[Para 33] The court rejects the notion that Sections 35 and 36 of the Arbitration and Conciliation Act, 1996, equate arbitral proceedings to civil court proceedings for the purpose of Section 69(3).[Para 34] Decision: The court allows the appeal, determining that the ban under Section 69(3) of the Partnership Act does not apply to arbitral proceedings. Referred Cases: Delhi Development Authority Vs. Kochhar Construction Work, (1998) 8 SCC 559. East End Dwelling Co. Ltd. Vs. Finsbury Borough Council, (1951) 2 ALL ER 587. Firm Ashok Traders Vs. Gurumukh Das Saluja, (2004) 3 SCC 155. Jagdish Chander Gupta Vs. Kajaria Traders (India) Ltd., AIR 1964 SC 1882. Kamal Pushp Enterprises Vs. D.R. Construction Co., (2000) 6 SCC 659. M/s. Consolidated Engg. Enterprises Vs. Principal Secy. Irrigation Deptt., (2008) 6 SCALE 748. M/s. Indian Oil Corporation Limited Rep. by Its Chief LPG Manager (Engg.) S. Chandran Vs. M/s. Devi Constructions, Engineering Contractors, (2009) 2 Law Weekly 849. P. Sarathy Vs. State Bank of India, (2000) 5 SCC 355. Panchu Gopal Bose Vs. Board of Trustees for Port of Calcutta, (1993) 4 SCC 338. Paramjeet Singh Patheja Vs. ICDS Ltd., (2006) 13 SCC 322. Raj Kumar Khurana Vs. State of (NCT of Delhi), (2009) 6 SCC 72. State of W.B. Vs. Sadan K. Bormal, (2004) 6 SCC 59. Sumtibai Vs. Paras Finance Co. Regd. Partnership Firm, Beawer (Raj.) Through Mankanwar (Smt.) W/o Parasmal Chordia (Dead), (2007) 10 SCC 82. The Bharat Bank, Ltd., Delhi Vs. The Employees of the Bharat Bank Ltd., Delhi and the Bharat Bank Employees' Union, Delhi, AIR 1950 SC 188. JUDGMENT Fakkir Mohamed Ibrahim Kalifulla, J. - An interesting but very important legal question arises for consideration in this appeal relating to interpretation of Section 69(3) of the Indian Partnership Act with reference to its applicability to Arbitral proceedings. 2. The facts are not in controversy which can be briefly stated as under: The respondent which is a Cooperative Group Housing Society invited tenders for construction of 102 dwelling units with basement at Plot No. 21 Sector 5, Dwarka New Delhi. The tenders were invited in May 1998. The appellant, an unregistered partnership firm submitted its bid in response to the said tender on 06.05.1998. The appellant was the successful bidder and the contract was awarded to the appellant at an estimated cost of Rs. 9.80 crores. The appellant was issued a letter of intent. On 09.08.1998 the appellant submitted its first bill for the construction of the compound wall etc. The agreement for the construction of 102 dwelling units with basement was entered into between the appellant and the respondent on 02.02.1999. It is stated that there was some delay in getting the plan sanctioned, which according to the appellant, he was not responsible for the delay. A dispute arose as between the appellant and the respondent which necessitated the appellant to move the High Court of Delhi by way of an application under Section 9 of the Arbitration and Conciliation Act 1996 (for short "1996 Act") to restrain the respondent from dispossessing the appellant from the worksite till the work executed by the appellant is measured by the Commissioner to be appointed by the Court. It was filed on 22.05.2005. A Commissioner was also appointed by the High Court. The appellant filed another application under Section 9 of the 1996 Act to restrain the respondent from operating its bank accounts and from dispossessing the appellant on 29.01.2003. 3. With reference to the dispute which arose as between the appellant and the respondent an arbitrator/an advocate by name Smt. Sangeeta Tomar was appointed by the respondent to adjudicate the dispute between them. As the appointment came to be made on 17.03.2003 by the respondent, though, the appellant earlier moved the High Court by way of an Arbitration Application No.145 of 2003 on 09.07.2003 under Section 11(5) of the 1996 Act for appointment of an independent arbitrator, the same was subsequently withdrawn. The appellant participated in the arbitration proceedings before the arbitrator appointed by the respondent. Claims and counter claims were made by the appellant as well as the respondent before the arbitrator. The arbitrator passed the award on 05.05.2005 wherein the claim of the appellant was allowed to the extent of Rs. 1,36,24,886.08 along with interest at the rate of 12% from 01.06.2002 till the date of the award and further interest from the date of award till its payment at the rate of 18% per annum. While resisting the claim of the appellant, the respondent did not specifically raise any plea under Section 69 of the Partnership Act. 4. The respondent challenged the award dated 05.05.2005 under Section 34 of the 1996 Act before the Delhi High Court which was registered as A.A. No.188 of 2005. The said application was filed on 02.08.2005. The respondent's application was dismissed by the learned Single Judge by an order dated 01.09.2005. The respondent filed Review Application No.26 of 2005 which was also dismissed by the learned Single Judge by an order dated 03.10.2005. As against the orders dated 01.09.2005 and 03.10.2005, the respondent preferred appeals in FAO (OS) No.376 of 2005 on 14.11.2005. Pending disposal of the appeals, an interim order was passed on 21.07.2006 directing the respondent to deposit 50% of the decretal amount within six weeks and by subsequent order dated 18.08.2006 the time was extended by another four weeks. By the impugned order dated 20.11.2007 the Division Bench having allowed the FAO(OS) No.376 of 2005, the appellant is before us. 5. We heard Mr. Dhruv Mehta, learned Senior Counsel for the appellant and Mr.Amarendra Saran, learned Senior Counsel for the respondent. Mr. Dhruv Mehta, learned Senior Counsel in his submissions after drawing our attention to Section 69 and in particular Section 69(3) of the Partnership Act contended that when sub sections (1) and (2) are read in to sub section (3) of Section 69, the expression "other proceedings" mentioned in the said sub section (3) should be with reference to other proceedings connected with a suit in a Court and cannot be read in isolation. The learned Senior Counsel contented that if it is read in that sense the expression "other proceedings" in sub section (3) can have no relevance nor referable to Arbitral proceedings in isolation. The learned Senior Counsel further contended that going by the plain reading of the Statute and if the golden rule of construction is applied, an arbitrator by himself is not a court for the purpose of Section 69 of the Statute. The learned Senior Counsel then submitted that there is a vast difference between an arbitrator and the Court, that though an arbitrator may exercise judicial powers, he does not derive such powers from the State but by the agreement of the parties under a contract and, therefore, he cannot be held to be a Court for the purpose of Section 69 of the Partnership Act. While referring to Section 36 of the 1996 Act, the learned Senior Counsel submitted that it is only a statutory fiction by which for the purpose of enforcement, the award is deemed to be a decree and it cannot be enlarged to an extent to mean that by virtue of the said award to be deemed as a decree, the arbitrator can be held to be a Court. Lastly, it was contended by him that in order to invoke Section 69(3), three mandatory conditions are required to be fulfilled, namely, that (a) there should be a suit and the other proceedings should be intrinsically connected to the suit, (b) such suit should have been laid to enforce a right arising from the contract and (c) such a suit should have been filed in a Court of law. 6. As against the above submissions Mr. Saran, learned Senior Counsel for the respondent submitted that the expression "other proceedings" will include arbitral proceedings and that the foundation for it must only be based on a right in a contract. In support of the said submission, learned senior counsel contended that this Court has held while interpreting Section 14 of the Limitation Act that arbitral proceedings are to be treated on par with civil proceedings. The learned Senior Counsel also submitted that under Section 2(a) of the Interest Act, arbitral proceedings have been equated to regular suits and, therefore, the expression "other proceedings" in Section 69(3) of the Partnership Act should be held to include an Arbitral Proceeding on par with a suit. The learned counsel, therefore, contented that the arbitrator should be held to be a Court and the proceedings pending before it are to be treated as a suit and consequently other proceedings. By referring to Sections 35 and 36 of the 1996 Act where an award of the arbitrator has been equated to a decree of the Court and applicability of Civil Procedure Code for the purpose of execution has been prescribed, the learned Senior Counsel contended that the arbitral proceedings should be held to be civil proceedings before a Court. 7. Mr. Dhruv Mehta, learned Senior Counsel for the appellant relied upon the decisions reported in Jagdish Chander Gupta v. Kajaria Traders (India) Ltd. 1964 (8) SCR 50, Kamal Pushp Enterprises v. D.R. Construction Co. (2000) 6 SCC 659, The Bharat Bank, Ltd., Delhi v. The Employees of the Bharat Bank Ltd., Delhi and the Bharat Bank Employees' Union, Delhi - AIR 1950 SC 188, Firm Ashok Traders and another v. Gurumukh Das Saluja and others - (2004) 3 SCC 155, Sumtibai and Ors. v. Paras Finance Co. Regd. Partnership Firm, Beawer (Raj.) Through Mankanwar (Smt.) W/o Parasmal Chordia (Dead) and Ors.- (2007) 10 SCC 82, Panchu Gopal Bose v. Board of Trustees for Port of Calcutta - (1993) 4 SCC 338, M/s. Consolidated Engg. Enterprises v. Principal Secy. Irrigation Deptt. and Ors. - 2008 (6) SCALE 748, State of W.B. v. Sadan K. Bormal and Anr. - (2004) 6 SCC 59, Raj Kumar Khurana v. State of (NCT of Delhi) and Anr. - (2009) 6 SCC 72 and M/s. Indian Oil Corporation Limited Rep. by Its Chief LPG Manager (Engg.) S. Chandran v. M/s. Devi Constructions, Engineering Contractors and another - 2009 (2) Law Weekly 849. Mr. Saran, learned Senior Counsel for the respondent relied upon the decisions reported in Firm Ashok Traders (supra), Delhi Development Authority v. Kochhar Construction Work and Anr. (1998) 8 SCC 559, Panchu Gopal Bose (supra) and P. Sarathy v. State Bank of India - (2000) 5 SCC 355. 8. Having heard learned counsel for the appellant as well the respondent and having bestowed our serious consideration to the respective submissions, the various decisions relied upon and the provisions contained in the Partnership Act, the Interest Act, Civil Procedure Code and Arbitration Act, we are of the view that the submissions of Mr. Dhruv Mehta, learned Senior Counsel for the appellant merit acceptance. 9. To appreciate the respective submissions and in support of our conclusion, at the very outset Section 69 requires to be noted, which reads as under: "69. Effect of non-registration.-(1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the register of firms as a partner in the firm. (2) No suit to enforce a right arising from a contract shall be instituted in any court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the register of firms as partners in the firm. (3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceedings to enforce a right arising from a contract, but shall not effect - (a) The enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or any right or power to realize the property of a dissolved firm, or (b) the powers of an official assignee, receiver or court under the Presidency- towns Insolvency Act, 1909 (3 of 1909) or the Provincial Insolvency Act, 1920 (5 of 1920) to realize the property of an insolvent partner. (4) This section shall not apply- (a) to firms or to partners in firms which have no place of business in the territories to which this Act extends, or whose places of business in the said territories, are situated in areas to which, by notification under section 56, this Chapter does not apply, or (b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (5 of 1882), or, outside the Presidency-towns, is not of a kind specified in Schedule II to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim." 10. Though, some of the decisions which were cited before us dealt with Section 69(3) of the Partnership Act, in the instance we wish to analyze the said sub-section along with the other components of the said Section 69. When we read sub-section (3) of Section 69 carefully, we find that as rightly contended by Mr. Dhruv Mehta, learned Senior Counsel for the appellant, the provisions of sub-sections (1) and (2) have been impliedly incorporated in sub-section (3). When the opening set of expression in sub-section (3) states that the provisions of sub-sections (1) and (2) shall apply, there is no difficulty in accepting the said submission of learned Senior Counsel for the appellant that the entirety of the said two sub-sections should be held to be bodily lifted and incorporated in sub-section (3). It is difficult to state that any one part of sub-sections (1) and (2) alone should be held to be incorporated for the purpose of sub-section (3). Therefore, we are convinced that when we read sub-section (3) it is imperative that all the ingredients contained in sub-sections (1) and (2) should be read into sub-section (3) and thereafter apply the said sub- section when such application is called for in any matter. 11. Once we steer clear of the said position it will be necessary to note what are the specific ingredients contained in sub-sections (1) and (2). When we read sub-section (1) of Section 69 the said sub-section primarily imposes a ban on any person as a partner of a firm from filing any suit to enforce a right arising from a contract or a right conferred under the Partnership Act in any Court by or on behalf of an unregistered firm or a person suing as a partner of a firm against the said firm or against any person alleged to be or to have been a partner in that firm. To put it in nut-shell the ban imposed under sub-section (1) of Section 69 is on any person in his capacity as the Partner of an unregistered firm against the said firm or any of its partners, in the matter of filing a suit to enforce a right arising from a contract or conferred by the provisions of the Partnership Act. In effect, the ban is in respect of filing a suit against that unregistered firm itself or any of its partners by way of a suit under a contract or under the Partnership Act. Under sub-section (2) the very same ban is imposed on an unregistered firm or on its behalf by any of its partners against any third party by way of a suit to enforce a right arising from a contract in any Court. A close reading of sub-Sections (1) and (2) therefore shows that while under sub-section (1) the ban is as against filing a suit in a Court by any person as a partner of an unregistered firm against the firm itself or any of its partner, under sub- section (2) such a ban in the same form of a suit in the Court will also operate against any third party at the instance of such an unregistered firm. The common feature in both the sub-sections are filing of a suit, in a Court for the enforcement of a right arising from a contract or conferred by the Partnership Act either on behalf of an unregistered firm or by the firm itself or by anyone representing as partners of such an unregistered firm. While under sub-section (1) the ban imposed would operate against the firm itself or any of its partners, under sub-section (2) the ban would operate against any third party. 12. The question for our consideration is by virtue of sub-section (3) whether the expression "other proceedings" contained therein will include Arbitral proceedings and can be equated to a suit filed in a Court and thereby the ban imposed against an unregistered firm can operate in the matter of arbitral proceedings. If sub-sections (1) and (2) are virtually lifted whole hog and incorporated in sub-section (3), it must be stated that it is not the mere ban that is imposed in sub-sections (1) and (2) that alone is contemplated for the application of sub-section (3). In other words, when the whole of the ingredients contained in sub-sections (1) and (2) are wholly incorporated in sub-section (3), the resultant position would be that the ban can operate in respect of an unregistered firm even relating to a set off or other proceedings only when such claim of set off or other proceedings are intrinsically connected with the suit that is pending in a Court. To put it differently, in order to invoke sub-section (3) of Section 69 and for the ban to operate either the firm should be an unregistered one or the person who wants to sue should be a partner of an unregistered firm, that its / his endeavour should be to file a suit in a Court, in which event even if it pertains to a claim of set off or in respect of `other proceedings' connected with any right arising from a contract or conferred by the Partnership Act which is sought to be enforced through a Court by way of a suit then and then alone the said sub-section can operate to its full extent. 13. As far as the construction of the said sub-section (3) of Section 69 is concerned, we are able to discern the above legal position without any scope of ambiguity. To be more precise, the condition precedent for the operation of ban under sub-section (3) is that the launching of a suit in a Court of law should be present and it should be by an unregistered firm or by a person claiming to be partner of an unregistered firm either to a claim for set off in the said suit or any other proceedings intrinsically connected with the said suit. 14. In the event of the above ingredients set out under sub-sections (1), (2) and (3) being fulfilled then and then alone the ban prescribed against an unregistered firm under Section 69(1), (2) and (3) would operate and not otherwise. 15. Keeping the above outcome of the legal position that can be derived from a reading of sub-sections (1), (2) and (3) of Section 69 in mind we can draw further conclusions by making specific reference to sub-clauses (a) and (b) of sub-section (3) as well as the exceptions set out in sub-clauses (a) and (b) of sub-section (4) as well. When under sub-section (3) which also relates to a ban concerning `other proceedings', the law makers wanted to specifically exclude from such ban such of those proceedings which also likely to arise in a suit, but yet the imposition of ban of an unregistered firm need not be imposed. Keeping the said intent of the law makers in mind, when we read sub-clauses (a) and (b) of sub-section (3), it can be understood that even though such other proceedings may be for the enforcement of any right to sue but yet if it is for the dissolution of a firm or for accounts of a dissolved firm or any right or power to realize the property of a dissolved firm, the same can be worked out by way of a suit in a Court or by way of other proceedings in that suit and the same will not be affected by the ban imposed under sub-section (3). Similarly, any steps initiated at the instance of an official assignee, a receiver or Court under the Presidency-Towns Insolvency Act of 1909 (3 of 1909) or the Provincial Insolvency Act of 1920 (5 of 1920) to realize the property of an insolvent partner in a pending suit of a Court also stand excluded from the ban imposed under sub-section (3). The specific exclusions contained in clauses (a) and (b) of sub-section (3) therefore makes the position clear to the effect that even though such proceedings may fall under the expression "other proceedings" and may be intrinsically connected with a suit in a Court, yet the ban would not operate against such proceedings. 16. When we read sub-section (4), the ban imposed under sub-sections (1), (2) and (3) will have no application to any of those proceedings set out in sub- clauses (a) and (b) of the said sub-section (4). A specific reference to sub-clause (b) of sub-section (4) disclose that in the last part of the said sub-clause it is specifically provided that other proceedings incidental to or arising from any suit or claim of set off not exceeding Rs. 100 in value under those specific statute referred to in the said sub- clause can also be launched without any ban being operated as provided under sub-sections (1), (2) and (3). The said part of sub-clause (b) of sub- section (4) thus gives a vivid picture as to the position that the `other proceeding' specified in the said sub-section can only relate to a pending suit in a Court and not to any other different proceeding which can be categorized as `other proceedings'. 17. We are thus able to arrive at a definite conclusion as to the scope and ambit of Section 69 in particular about Section 69(3). Having thus analyzed the provision in such minute details and its implication, we can now apply the said provision to the case on hand and find out whether Section 69(3) is attracted to the Arbitral Proceedings and the ultimate award passed therein by construing the same as falling under the expression "other proceedings". 18. In the case on hand, the contract between the parties contained an Arbitration Clause. The respondent invoked the said clause and an Arbitrator came to be appointed. After the respondent filed its statement of claim, the appellant filed its reply and also its counter claim dated 30.08.2003. Before the Arbitrator, in the course of oral arguments, a faint attempt was made contending that, the appellant-firm being an unregistered one, by virtue of Section 69 of the Partnership Act, the proceedings insofar as the counter claim was concerned, the same was not maintainable and should be rejected. The Arbitrator took the correct view that Section 69 has no application to the proceedings of the Arbitrator and held that the objection of the respondent was not sustainable. The Arbitrator allowed the counter claim to the extent of Rs. 1,36,24,886/- (Rupees One crore thirty six lacs twenty four thousand eight hundred eighty six only). When the award of the Arbitrator was challenged by the respondent under Section 34 of the Act, the very same objection was raised as a ground of attack. The learned Single Judge of the High Court also found no merit in the said contention and upheld the award of counter claim. 19. By the impugned judgment, the Division Bench in the appeal filed under Section 37 of the Act took a contrary view and held that the counter claim in an Arbitral Proceedings is covered by the expression "other proceedings" contained in Section 69(3) of the Partnership Act and the appellant being an unregistered firm at the relevant point of time was hit by the embargo contained therein and consequently the award of counter claim in the award as confirmed by the learned Judge was reversed as not justiciable by virtue of Section 69 of the Partnership Act. 20. Based on the close analysis of Section 69 in its different parts, we are able to discern and hold that in order to attract the said D.D 29/06/2016

Facts: The case involves MIS Umesh Goel (Appellant) against Himachal Pradesh Cooperative Group Housing Society Ltd. (Respondent). The dispute centers on the ban imposed under Section 69 of the Partnership Act, specifically focusing on whether this prohibition extends to arbitral proceedings.Issues: The interpretation of Section 69(3) of the Partnership Act, determining whether the ban against unre...

REPORTABLE # CIVIL APPEAL NO. 7916 OF 2009. Docid 2016 LEJ CIVIL SC 224307