Fate Of Arbitration Agreement Upon Death Of A Party

Introduction

In a recent decision of Rahul Verma & Ors. v. Rampat Lal Verma & Ors.¹ the Hon'ble Supreme Court of India reaffirmed the principle that arbitration agreements do not cease to exist upon death of a party and can be enforced by or against the legal representatives of the deceased partner.

Facts of the Case:

The case stemmed from a dispute between a partner of a partnership firm and legal heirs of two deceased partners. At the time when the original commercial suit was pending, the Respondents (also the original Defendants) preferred an application under Section 8 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act") before the Commercial Court at Dibrugarh, for dismissal of the suit and a reference to arbitration. The said application was dismissed by the Ld. Civil Judge. Aggrieved by the said dismissal, the Respondents preferred an arbitration appeal before the High Court of Gauhati vide which the High Court held that a reading of