IN THE HIGH COURT OF BOMBAY
S.M. Jhunjhunuwala, J.
M/s. Glorious Plastics Ltd.... Plaintiffs.
Versus
Laghate Enterprises and others... Defendants.
Chamber Summons No. 1024 of 1989 in Sum. Suit No. 1118 of 1988, decided on 28-9-1992.
Advocates appeared :
S.J. Shah with M.D. Vakil, for the plaintiffs in support.
V. Kotwal, for respondent No. 1 to show cause.
Virendra V. Tulzapurkar i/b Desai Diwanji, for respondent No. 4 to show cause.
Under proviso to Section 32 of Act a retired person, who had failed to give public notice and there was nothing to show that he had represented or permitted others to represent the firm to a third person dealing with firm without knowledge that he was a partner therein, could not be held liable to a third party who did not know of such person being a partner and had dealt with the firm after such retirement. Partner can be made liable only for those acts of the firm of which he is partner. Where liability of a partner is in dispute, same can be decided on basis of affidavits.
2. In respect of amounts due and payable under sixteen Bills of Exchange drawn by 1st defendants on the 2nd defendants in favour of the plaintiffs, on 2nd February, 1988, the plaintiffs lodged the suit against the defendants for recovery of Rs. 5,67,800/- together with interest on Rs. 5,00,000/- to be calculated at the rate of 18% per annum from the date of the suit till payment and costs of the suit. The 1st defendants are a partnership firm. The 2nd defendants are also a partnership firm. The leave under Order XXI, Rule 50 of the Code is sought as against the 4th respondent herein on the footing that the 4th respondent was a partner in the firm of the 2nd defendants and as such, liable to pay the decreetal amount to the plaintiffs.
3. Mr. Shah, the learned Advocate appearing for the plaintiffs, has submitted that the 4th respondent, being a partner in the firm of the 2nd defendants (for short `the said firm') is liable to pay the decretal amount to the plaintiffs though he was neither used in his individual capacity as a partner in the said firm nor a writ of summons to answer the plaint in the suit was served upon him. Mr. Shah has further submitted that under section 25 of The Indian Partnership Act, 1932 (for short, `the said Act'), every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner and since the 4th respondent was a partner in the said firm when the said Bills of Exchange were accepted by the 2nd defendants, the 4th respondent is also liable to pay the decretal amount to the plaintiffs. Mr. Shah has further submitted that the said firm is registered with the Registrar of Firms under the provisions of the said Act and the extract of registration issued in the year 1989 by the Registrar of Firms shows the name of the 4th respondent therein as partner in the said firm and as such, in any event, the 4th respondent held out himself to be a partner in the said firm and has rendered himself liable for the obligations of the said firm under the provisions of section 28 of the said Act. Mr. Shah has further submitted that the notice of retirement of the 4th respondent from the said firm though published in the vernacular newspaper on 7th October, 1988 is not in compliance with the provisions of section 72 of the said Act as public notice of the retirement of the 4th respondent has not been effected by publication in the official gazette and no notice has been given to the Registrar of Firms till 3rd January, 1992 and as such, under section 63 of the said Act, and as such, the 4th respondent has not ceased to be liable. Mr. Shah has lastly submitted that since facts are in dispute, the question in issue has to be decided in the same manner as the trial of a suit and therefore, the hearing of the Chamber Summons be adjourned to Court for recording evidence. In support of his this submission Mr. Shah has relied upon the case of (Jayantilal Mohanlal v. Narandas Sons)1, reported in A.I.R. 1983 Bom.
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