In Brief
A legal representative of a deceased partner invoked an arbitration clause in a partnership deed to resolve disputes. The clause stated arbitration was "optional" and the arbitrator would be appointed "by partners with mutual consent." The High Court had rejected the petition, treating the clause as non-binding. The Supreme Court held that the arbitration clause must be read as a whole: while the first part clearly mandates arbitration of partnership disputes, the second part merely requires mutual consent for arbitrator appointment. When parties cannot agree, Section 11(6) of the Arbitration Act empowers courts to appoint the arbitrator. The appeal was allowed and the petition treated as approved.
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