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Two partners of a Jaipur firm, Kiran and Lalit, have a dispute over the accounts. Lalit argues that he can take the matter only to a tribunal. Under India's court hierarchy, which statement is correct about the civil courts for deciding a dispute between partners of a firm?

A partner dispute is a civil matter, so a civil court with competent jurisdiction hears it. Appeals can go to the High Court and finally the Supreme Court. The Registrar of Companies and the CCI have no role in deciding such disputes.

  1. AOnly the Supreme Court can hear such disputes, as original jurisdiction
  2. BPartners must first approach the Registrar of Companies, since all firms are registered there
  3. CSuch a dispute is a civil matter, and a civil court of competent jurisdiction can hear it, with appeals going up to the High Court and ultimately the Supreme CourtCorrect
  4. DOnly the Competition Commission of India can decide it

Explanation

A dispute among partners is an ordinary civil dispute decided by a civil court of competent jurisdiction. Appeals follow the hierarchy: district court, High Court, Supreme Court. The Supreme Court's original jurisdiction is limited to specific matters, the ROC deals with companies, and CCI deals with competition issues.

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