Authority: High Court at Calcutta, Commercial Appellate Division

Order Date: July 8, 2026

Case Overview

  • Parties: Appellants – Haldibari Tea Manufacturers LLP (partner 1) and an unnamed associate; Respondents – Mohindra Tubes Limited (respondent 1) and others (respondents 2‑5).
  • Original dispute: Commercial Suit No. 1 of 2023 filed in the Commercial Court at Siliguri by respondents 1 & 2 seeking recovery of money and other reliefs from the appellants concerning the partnership firm Haldibari Tea Manufacturers LLP.
  • Arbitration: An arbitrator passed an award on November 24, 2022 relating to the partnership interests. The trial judge, via Order No. 36 dated April 29, 2025, stayed the operation of that award pending disposal of the suit.
  • Appeal: The appellants filed AO‑COM 16 of 2025 challenging the stay order, arguing that the transfer of partnership interest to respondents 1 & 2 violated Sections 23(1) and 42 of the Limited Liability Partnership Act, 2008 and the partnership agreement dated November 11, 2019 (re‑constituted on January 31, 2020 and again on January 31, 2022).
  • Key contentions: Appellants claimed no consent was obtained for the transfer, that respondent 1 was not a valid partner, and that the Form filed with the Registrar of Companies was ineffective. Respondents argued respondent 1 was validly inducted, that the appellant 2 had been expelled on July 22, 2022, and that the arbitration award should not bind them.
  • Trial Judge’s reasoning (impugned order): Found respondents 1 & 2 had made out a prima facie case, the balance of convenience favored them, and they would suffer irreparable loss if the award were not stayed.

Final Outcome

  • The appellate court dismissed AO‑COM 16 of 2025, upholding the trial judge’s injunction and finding no ground to interfere with the stay order.
  • The court directed that the Commercial Suit No. 1 of 2023 be disposed of within six months from the date of this order, without unreasonable adjournments.
  • No order as to costs was made.
  • The judgment was signed by Justice Debangsu Basak with concurrence from Justice Md. Shabbar Rashidi on July 8, 2026 (digitally signed by Surojit Das on July 9, 2026).

Topics: Partnership Dispute, Arbitration Stay