JAGDISH CHANDER GUPTA vs KAJARIA TRADERS (INDIA) LTD.

The Supreme Court held that the arbitration clause in a partnership agreement, despite the partnership being unregistered, allows for the appointment of an arbitrator under Section 8(2) of the Arbitration Act, 1940. The Court interpreted Section 69(3) of the Indian Partnership Act, 1932, concluding that the right to proceed to arbitration is indeed a right arising from the contract. The Court emphasized that the general words in the statute should not be restricted by specific terms unless a clear category is established, thus affirming the High Court's decision to allow the arbitration application.