KARTIK RADIA vs BDO INDIA LLP AND ANR

Judgment text excerpt

CARAP-31-2022 -F.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION Digitally signed by SHRADDHA SHRADDHA KAMLESH COMM. ARBITRATION APPLICATION NO. 31 OF 2022 KAMLESH TALEKAR TALEKAR Date: 2025.03.04 14:33:54 +0530 KARTIK RADIA ...Applicant Versus M/s. BDO INDIA LLP AND ANR. ...Respondents Mr. Amrut Joshi a/w. Mr. Prashant Trivedi and Petal Chandok i/b Khushboo Jain, for Applicant. Mr. Gaurav Joshi, Senior Advocate a/w. Mr. Jatin Pore, Sreeram VG, Karan Jain i/b DSK Legal, for Respondent No. 1. Mr. Mayur Khandeparkar a/w.Mr. Jatin Pore, Sreeram VG, Karan Jain i/b DSK Legal, for Respondent No. 2. CORAM : SOMASEKHAR SUNDARESAN, J. Reserved on :January 28, 2025 Pronounced on : March 4, 2025 JUDGEMENT: 1. Whether disputes between partners of a limited liability partnership (“LLP”) and the LLP can at all be covered by the arbitration agreement contained in a limited liability partnership agreement (“ LLP Agreement”) to which the LLP is not a signatory, is the short question that has arisen in this Application filed under Section 11 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”). Page 1 of 17 March 4, 2025 CARAP-31-2022 -F.docx 2. For the reasons set out below, I reject the absolute proposition canvassed by the Respondents – that because an LLP is not a signatory to the LLP Agreement, it can never be a party to proceedings initiated under the arbitration clause in such agreement. The Parties: 3. The Applicant, Mr. Kartik Radia (“Radia”) is a former partner of BDO India LLP, which is Respondent No. 1 (“ BDO”). Mr. Milind Kothari, the Managing Partner of the LLP is Respondent No. 2 (“ Kothari”). Both Respondents present trenchant objection to arbitration initiated under the LLP Agreement dated August