If a partnership deed provides that disputes are to be settled by arbitration (panch decision), which method should be followed before going to court?

Correct answer: Settlement through an arbitrator or panch

When the deed contains an arbitration (panch) clause, disputes must ordinarily be referred to the arbitrator/panch as the first mode of settlement because it is an agreed alternative dispute resolution (ADR). Courts usually expect parties to follow the deed’s arbitration provision before litigating. Option C (stopping drawings) is merely an internal management step by partners and does not fulfill a deed’s arbitration requirement; options B and D are unrelated remedies. Exam tip: always check the partnership deed for an arbitration/panch clause — if present, that procedure takes precedence before approaching court.