Supreme Court Says That Mere Reference To The 1940 Arbitration Act Will Not Render The Entire Arbitration Agreement Invalid

Brief Facts:

• Purrushottam s/o Tulsiram Badwaik (herein after referred to as the "Appellant") and Anil (herein after referred to as the Respondent) entered into a partnership agreement dated November 9, 2005. Clause 15 of the said partnership agreement was as under- "15) That in case of any dispute between the partners as regards interpretation of this Deed or any other matter connected with the partnership business, the same shall be referred to for arbitration in accordance with the provisions of Indian Arbitration Act, 1940, and the decision of the Arbitrator shall be final and binding on all the partners."
• In April 2014, the Respondents filed a civil suit for declaration, damages, accounts and permanent injunction against the Appellant.