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53. Rajia Begum vs. Barnali Mukherjee
2026 INSC 106
February 02, 2026
Arbitration Agreement – Partnership firm - Serious Allegations of Forgery – Non-arbitrability of Dispute - High Court’s order referring the dispute to arbitration was set aside. [S. 8, 9 & 11, Arbitration and Conciliation Act, 1996; Article 227, Constitution of India]
FACTS
A partnership firm was constituted between Barnali Mukherjee (Respondent) and two others. Rajia Begum (Appellant) claimed that by virtue of a Power of Attorney she executed a Deed of Admission and Retirement whereby she was inducted as a partner and the original partners retired. The Admission Deed contained an arbitration clause and formed the sole basis of her claim. Respondent categorically denied the execution and existence of the Admission Deed and alleged that it was a forged and fabricated document. It was further contented that Appellant never acted as a partner and was reflected only as a guarantor in all contemporaneous records. The partnership business was later absorbed into a company. Appellant initiated proceedings under Section 9 of the Arbitration and Conciliation Act, 1996, which were rejected by the High Court on
