Arbitration agreement enforceable against legal represantatives of deceased.

Arbitration agreement enforceable against legal represantatives of deceased.

Thus, the Supreme Court reaffirmed that an arbitration agreement is binding even qua the legal representatives of a deceased partner of a partnership firm. The appellants’ argument was rejected by the Supreme Court. It reiterated that the term “partners” in an arbitration agreement includes their legal heirs, representatives, assigns, legatees, etc. The Supreme Court ruled that the legal heirs of a deceased person continue to hold rights arms concerning the enforcement of the arbitral award or to be bound by the arbitral award, meaning the legal heirs will not be prejudiced and continue to act as representatives of that party. The Court further noted that, under Section 40 of the Arbitration and Conciliation Act, 1996, the death of a party does not affect the existence of an arbitration agreement. Validates that death of a partner does not extinguish any rights to sue for renditions of catastrophic accounts under a partnership agreement.

Find Lawyers In Your City

Connect with Best Lawyers at your location