Arbitrator Empowered To Pass Order For Dissolution Of Partnership Firm Once Dispute Is Referred: Madhya Pradesh HC

The Madhya Pradesh High Court ruled that an arbitrator has the authority to pass an order for the dissolution of a partnership firm once a dispute between the partners is referred for arbitration. The case involved a dispute between two partners who had jointly set up a partnership business but later fell into conflict. The Court emphasized that arbitration clauses in partnership agreements can give arbitrators the power to resolve disputes, including dissolution of the partnership. The ruling allows arbitrators to make such decisions under the Arbitration and Conciliation Act, streamlining resolution for businesses facing internal conflicts.