Bombay High Court Appoints Arbitrator in Partnership Dispute, Holds Non-Signatory Legal Heirs Bound by Arbitration Clause

Case Snapshot

Case Name: Parag Harivadan Dhagat v. Satinder Pal Singh Kartar Singh & Anr.

Citation / Neutral Citation: 2026:BHC-OS:19484

High Court: High Court of Judicature at Bombay

Bench: Hon'ble Mr. Justice Amit Borkar

Date of Judgment: 1st September, 2026

Area of Law: Arbitration Law, Partnership Law, Section 11 of Arbitration and Conciliation Act, 1996, Indian Succession Act

Judgment Headline

Court appoints arbitrator despite non-signatory objection; legal heirs bound by partnership arbitration clause.

The Judgment in One Line

Bombay High Court allows Section 11 application, appoints arbitrator and holds legal heirs of deceased partner bound by arbitration clause despite being non-signatories.

Why This Judgment Matters

This judgment establishes that legal heirs of a deceased partner can be bound by and entitled to enforce an arbitration clause in a partnership deed even if they have not signed it. It clarifies that the arbitration agreement survives the death of a partner under Section 40 of the Arbitration Act. The ruling also addresses the interplay between testamentary proceedings and arbitration, holding that pending probate matters do not bar reference to arbitration for part

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