In Brief
The case involved a dispute over an unregistered partnership (Gupta Bus Service) between the respondent and the appellants' predecessors. The respondent filed for arbitration under the Arbitration Act, 1940. The appellants objected, citing a statutory bar on unregistered partnerships under the Partnership Act. The Civil Judge and High Court found the application maintainable. The Supreme Court allowed the appeal, not on merits but because the High Court had failed to apply relevant Supreme Court precedent (Krishna Motor Service) when deciding the writ petition. The Court remitted the matter to the High Court for fresh adjudication in light of the correct legal principles."
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