CHANDRAKANTHARAJ URS, J. ( 1 ) THIS is an application filed by three of the respondents in Co P. No. 1 of 1888. The prayer in the application is to stay further proceedings in the Company petition on the ground that the petitioner cannot maintain this petition under Section 582 of the Companies Act for winding up of the firm as an unregistered Company and as they have not exhausted the remedy of Arbitration to resolve the dispute between the parties as required by Section 34 of the A' bitration act. In support of the latter contention, learned Counsel for the applicant reliese upon the decision of the Supreme coutt in the case of Food Corporation of india and another v. Yadav Engineer and contractor- (A. I. R. 1982 S. C. 1302 ). ( 2 ) I have perused the decision. In my opinion, the said decision has no application whatsoever to the facts of this case. What their Lordships of the supreme Court laid down in that case was that Sec. 34 of Arbitration Act would be a bar to maintain a suit for relief against one of the parties to the agreement which provided for arbitration if the dispute related to the agreement itself and was required to get the dispute resolve by Arbitration. In that context it was held that the approach of civil court should be such that the suit should be stayed in order to give effect to provisions in the agreement to those who seek resolution of their disputes. On that principle, they held that entitlement of parties to get their civil dispute adjudicated under Sec. 9 C. P. C. would stand barred by Sec. 34 of the Arbitration Act. ( 3 ) BUT it is not the case here. Here, there is no relief asked by one partner against another partner ; nor is any dispute required to be settled between the partners. What is asked is the dissolution of the body of persons which answers to the description of an unregistered company within the meaning of Sec. 582 of the Companies Act. Winding up proceeding commenced in that behalf is not a civil suit. Nor is the Companies court a Civil Court.
What is asked is the dissolution of the body of persons which answers to the description of an unregistered company within the meaning of Sec. 582 of the Companies Act. Winding up proceeding commenced in that behalf is not a civil suit. Nor is the Companies court a Civil Court. It is a proceeding of special nature and character which provides for winding up not only Companies incorporated under the Act but also any other body of persons which will answer to the description of unregistered Company. ( 4 ) WHAT is being decided in this proceeding is whether an unregistered company should or should not be wound up. In that view of the matter Sec. 34 of the Arbitration Act which expressly refers to "any legal proceeding against any other party to the agreement" cannot be construed to have any application to proceeding which in its very nature is a proceeding which will result in an order in-rem and not in personam. Therefore Application 319 of 1988 is rejected. --- *** --- .