SUPREME COURT OF INDIA
BEFORE A.M. AHMADI AND N. VENKATACHALA, JJ.
SUBODH KUMAR GUPTA
Versus
SHRIKANT GUPTA AND OTHERS
SLP (Civil) No. 10301 of 1993
Decided on 19-8-1993
Advocates appeared:
K.K. Venugopal, Senior Advocate (S.K. Gambhir and Vivek Gambhir, Advocates, with him) for the Petitioner;
Shanti Bhushan and Ashok H. Desai, Senior Advocates (M.L. Bachawat, S.K. Jain, A.P. Dhamija, S. Atreya and A.K. Srivastava, Advocates, with them) for the Respondents.
Civil Procedure Code, 1908 – Sections 15 to 20 – Partnership Act – Section 61 – Territorial Jurisdiction – Commencement of Suit – Plaintiff also was residing at when he shifted to Chandigarh shifted to Chandigarh he visited Mandsaur oft and on in connection with the business of case is that after he shifted to Chandigarh he used to call for and receive statements of accounts of business carried on at Mandsaur and he also received and booked orders for the firm at Chandigarh which he forwarded to Mandsaur for execution him branch office of firm was at Chandigarh as is evident from stationery of father shifted from Mandsaur to Rajnandgaon sometime in his brothers Shrikant Gupta and Suryakant Gupta were virtually in charge of business at Mandsaur – Held, Case of the plaintiff that this document was obtained by fraud or misrepresentation by suppression of material any other like reason he must have agreement set aside through court and unless he does that he cannot go behind agreement ignore it as a void document and proceed to sue for dissolution of partnership and rendition of accounts matter of the volition of the plaintiff to disregard document as void and proceed to ignore it altogether without having it declared void by a competent court – Plaintiff is quite vague as to the type of business activity he was carrying on not say whether it was with the consent of the other partners or on his own no averment that intimation of the opening of the branch at Chandigarh was given to Registrar of Firms as required of stationery is neither here nor there – Petition dismissed.
JUDGMENT
AHMADI, J.—The petitioner is the original plaintiff. He filed a suit in the court of the learned Senior Judge, Chandigarh, for dissolution of the firm carrying on business in the name and style of M/s Rajaram & From the Judgment and Order dated July 8, 1993 of the Punjab and Haryana High Court in C.R. No. 1483 of 1993
Brothers of which he claimed to be a partner along with his father, brothers and one K.K. Jindal. Each partner had 20% share in the profits and losses of the firm and the partnership was one at will. The head office of the firm was situate at Bombay where it was registered with the Registrar of Firms. Its factory was situate at Mandsaur where the father Rajaram Gupta lived with his sons and attended to the partnership business. The plaintiff also was residing at Mandsaur till 1974 when he shifted to Chandigarh. After he shifted to Chandigarh he visited Mandsaur oft and on in connection with the business of the firm. His case is that after he shifted to Chandigarh he used to call for and receive statements of accounts of the business carried on at Mandsaur and he also received and booked orders for the firm at Chandigarh which he forwarded to Mandsaur for execution. According to him, the branch office of the firm was at Chandigarh as is evident from the stationery of the firm. According to him, his father shifted from Mandsaur to Rajnandgaon sometime in the year 1980 and there after his brothers Shrikant Gupta and Suryakant Gupta were virtually in charge of the business at Mandsaur. Certain disputes arose as regards the management of the partnership business and consequently the correctness of the accounts maintained by Shrikant Gupta and Suryakant Gupta at Mandsaur became suspect. The plaintiff further contended that he had sent his representative to Mandsaur to check the accounts but his two brothers did not permit him to do so. He also personally went to Mandsaur and it appears from the averment in the plaint that his brothers were not cooperative and in fact some criminal complaints came to be lodged in regard to certain incidents which happened at Mandsaur while he was there. In the end the father Rajaram Gupta went to Mandsaur and later a meeting took place at Bhilai on November 26, 1992. At the said meeting an agreement was drawn up for the dissolution of the partnership firm and for distribution of its assets amongst the partners. It was mentioned in the agreement that it will enure for one month meaning there by that the accounts of the partnership would be settled within that time. The plaintiff now contends that the said agreement is void since material facts were suppressed by his two brothers and in any case the accounts were not settled within the period of one month. He also contends that certain assets owned by the firm were not included in the agreement and that also rendered the agreement void and unenforceable in law. He, therefore, contended that the agreement had to be ignored and the firm was required to be dissolved and accounts to be settled by the appointment of a Commissioner. He also claimed certain other incidental reliefs.
2. The first defendant Shrikant Gupta entered an appearance and raised a preliminary contention that on the averments in the plaint the court at Chandigarh had no jurisdiction to entertain and decide the suit. He contended that from the averments in the plaint it is manifest that the head office of the firm was situated at Bombay, that none of the defendants was a residing or carrying on business within the territorial jurisdiction of the Chandigarh Court and that no part of the cause of action had arisen therein. The learned trial Judge dismissed the application holding that a part of the cause of action had arisen within the territorial limits of the Chandigarh Court. However, on revision, a learned Single Judge of the High Court after carefully analysing the averments in the plaint came to the conclusion that on the mere allegation that the firm had a branc
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