Arbitration agreement not to be discharged by death of party thereto

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Ravi Prakash Goel vs Chanra Prakash Goel

   Supreme Court of India 21 Mar 2007 Binding (SC)

   Court's Decision & Legal Precedent

   Where an arbitration agreement is contained in a partnership deed and a dispute touching the affairs of the partnership firm has arisen during the lifetime of a partner, the legal representative of that deceased partner is entitled to invoke and enforce the arbitration clause, notwithstanding the death of the original partner. This right flows from Section 40 of the Arbitration and Conciliation Act, 1996, which mandates that arbitration agreements do not discharge upon death and remain enforceable by legal representatives, read harmoniously with Sections 46, 47, and 48 of the Indian Partnership Act, which preserve and enforce the rights of representatives to claim accounts and have the firm wound up. The arbitration clause survives the dissolution of the partnership and the death of a partner, and it is not necessary for the partnership deed to explicitly include heirs and legal representatives for this succession to apply, as such rights are governed by statute.

   On this section: Arbitration agreement not discharged by death; the Court held this section clearly mandates that arbitration agreements survive death and are enforceable by or against legal representatives of the deceased

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.