Xyz company registered under Indian partnership act was formed in 1983, consisting 3 partners x,y and z . partnership deed was registered in registrar of firms.
After few year x and y retired . A new partner called M was induced who did an agreement with sole partner z. The partnership deed was never registered , nor the register of firm was notified and the Partnership agreement was done on a lapsed stamp paper ( more than a year old from the date the new partnership was formed) .
After 10 years there was a dispute between partner z & M , resulting to which Partner z closed the bank account of the company.
As the partnership deed was not registered between z & M , M did not approached the court, instead filled a petition in arbitration court to re open the bank account as there was a clause present in the unregistered partnership deed ( 'In arising of any disputes between partners the matter will be resolved... Arbitration')
I am the partner z and would like to know if
Partner M on the basis of unregistered partnership deed can still give a petition in arbitration court to re open the bank account ? any way to quash this in the arbitration court?
What happens if the stamp paper of the partnership deed is more than one year old from the date of the partnership that was formed between z and M?