Tarun Dhameja vs Sunil Dhameja

The Supreme Court clarified the interpretation of an arbitration clause in a partnership deed, emphasizing that the clause, while labeled as 'optional', must be enforced unless all parties agree otherwise. The Court referenced the principles established in Vidya Drolia v. Durga Trading Corpn. and Oriental Insurance Co. Ltd. v. Narbheram Power & Steel (P) Ltd., asserting that arbitration clauses should be strictly construed to ensure disputes are resolved through the chosen tribunal. The appeal was allowed, affirming the binding nature of the arbitration clause in the partnership agreement.