Facts & Background:

• Sukanya Holdings Pvt. Ltd. was the Appellant.
• Jayesh H. Pandya & Anr. were the Respondent.
• The Appellant and Respondents Nos. 1 and 2 entered into a partnership agreement on 30 April 1992 for land development, with Ms. Jaykirti Mehta contributing land worth Rs. 65,51,000/—as capital.
• The Appellant contributed Rs. 1,25,00,000/—as capital until the commencement certificate was issued on 20 January 1993, following the submission of a construction plan in April 1992.
• On 11 March 1993, Ms. Jaykirti Mehta retired from the partnership. The appellant settled her dues for Rs. 60,88,000/—and an additional Rs. 5,24,000/—as per the award.
• A payment of Rs. 47,50,000/- was made to Mr. Kirti Desai to settle his suit, and the partnership entered into an agreement with M/s Laxman Commercial and Finance Ltd. for the construction's commencement.
• Between 1996 and 1998, disputes arose due to Respondents withdrawing funds without contributing to the capital, and on 7 April 1998, 5 flats were sold to creditors to repay loans.
• The partnership executed a Deed of Conveyance on 23rd June 1999 in favor of M/s West End Gymkhana Ltd. concerning the sold flats, subject to the rights of other parties involved.
• Respondent No. 1 filed suit No. 1991 of 2000 in the Bombay High Court for dissolution, accounts, and to challenge the conveyance deed, and the Appellant's application under Section 8 of the Arbitration Act was rejected by the High Court on 18th September 2001.
• Hence, the present appeal.
  

Main Issue:

• Whether the Arbitration & Conciliation Act, 1996 provides for partly referring a dispute to arbitration, and whether such a course is permissible under Section 8 of the Act? (Page 4)