1999 Supreme(Bom) 793
IN THE HIGH COURT OF BOMBAY
R.M. Lodha, J.
Namdeo Vyankatrao Dhande.... Appellant.
Versus
Narayan Anatrao Bonde.... Respondent.
First Appeal No. 455 of 1997, decided on 14-10-1999.
Advocates appeared :
R.B. Jaiswal with R.M. Oza, for appellant.
N.M. Godbole, for the respondent.
Amendment to section 69 of the Indian Partnership Act, 1932, by Maharashtra Act XXIX of 1984, which inserted sub-section (2-A), has no effect on the pending suits.
Headnote:
PARTNERSHIP - INDIAN PARTNERSHIP ACT, 1932 - SECTION 69(2-A) - SUIT FOR DISSOLUTION OF UNREGISTERED FIRM - MAINTAINABILITY - AMENDMENT TO SECTION 69 BY MAHARASHTRA ACT XXIX OF 1984 - APPLICABILITY TO PENDING SUITS - INTERPRETATION.
Fact of the Case:
Plaintiff filed a suit for dissolution of partnership, rendition of accounts, and other ancillary reliefs on 14-1-1980. The partnership firm was not registered under the Indian Partnership Act, 1932. The Trial Court dismissed the suit as not maintainable relying on section 69(2-A) of the Indian Partnership Act, 1932, which was inserted by Maharashtra Act XXIX of 1984.
Finding of the Court:
The High Court held that the suit was maintainable as on the date of filing of the suit, section 69(2-A) of the Indian Partnership Act, 1932, was not in force. The amendment to section 69 by Maharashtra Act XXIX of 1984, which inserted sub-section (2-A), had no effect on the pending suits. The Trial Court misconstrued the provisions of sub-section (2-A) and made it applicable to the present suit which was already pending on the date of coming into force of sub-section (2-A).
Issues: Whether the suit for dissolution of unregistered firm or for account of the unregistered firm which was otherwise maintainable on the date of the filing of the suit has been rendered not maintainable by insertion of sub-section (2-A) by the Maharashtra Amendment Act XXIX of section 1984.
Ratio Decidendi: The provision of newly added sub-section (2-A) and other consequential amendment in sub-section (3) has no effect on the pending suits. The Trial Court misconstrued the said provisions of sub-section (2-A) and made it applicable to the present suit which was already pending on the date of coming into force of sub-section (2-A). The plaintiff's suit which was maintainable has wrongly been dismissed as not maintainable by applying sub-section (2-A) which had no application on the pending suits.
Final Decision: The High Court allowed the appeal, set aside the judgment and decree passed by the Trial Court, and decreed the plaintiff's suit with costs.
2. The appellant is the original plaintiff. He filed a suit on 14-1-1980 against the respondent, who is the original defendant in the suit, inter alia praying for dissolution of partnership firm and for rendition of accounts and other ancillary reliefs. The plaintiff averred in the plaint that he is the owner of Shop No. 3 (O.S.), ground floor, Dongri Municipal Market, Dr. Maheshwari Road, Bombay, and he started carrying on business in bangles and cutlery in the said shop in the name and style of Kishore Novelty Store. Defendant, who is his brother-in-law requested him to induct him as partner in the said business and he promised to contribute Rs, 10,000/- towards partnership business as share capital in the proposed partnership business and accordingly partnership business was started between the plaintiff and the defendant from 10-8-1971. The partnership firm was not registered with the Registrar of firms under the provisions of the Indian Partnership Act. It is the plaintiff's case that on account of his ill-health he asked the defendant to attend the said business but the defendant wilfully and fraudulently committed breach of terms and conditions of the partnership agreement, did not accounts for the assets and income of the firm and systematically manipulated the accounts of the firm. The defendant also forged a deed of dissolution dated 14-4-1973 and filed suit based on that document which has been dismissed. The plaintiffs averred that the defendant frustrated in his attempt to oust the plaintiff from the partnership business has started harassing him and is not allowing the plaintiff to do the business. According to the plaintiff, in view of the wilful and persistent defaults of the terms and conditions of the partnership agreement committed by the defendant, continuance of the partnership business is impossible and that the business of the firm cannot be carried on in the present circumstances. He therefore prayed for dissolution of the firm, rendition of account and other ancillary reliefs.
3. The defendant resisted the suit by filing his written statement on 20-8-1980 and set up defence that the partnership between the plaintiff and the defendant was dissolved on 10-4-1973 after the plaintiff agreed to dissolve the partnership business and with full knowledge executed the deed of dissolution dated 10-4-1973 which was attested by his wife, whereby he gave up his right, title and interest of all nature in favour of the defendant. According to the defendant he also made certain payments towards plaintiff's debts which in all amount to Rs. 25,000/- to Rs. 30,000/-. He denied the allegation of mismanagement or harassing the plaintiff. In sum and substance, the defendant pleaded in defence that the question of dissolution of partnership does not arise since it has already been dissolved on 14-4-1973 and there is no question of accounts now in the facts and circumstances of the case.
4. The Trial Court framed various issues on 9-8-1996 and though there was no defence set up by the defendant in the written statement about the maintainability of the suit for want of registration of firm, in view of the provisions of section 69(2-A) of the Indian Partnership Act, 1932, which was obtaining on the date of framing of issues, the Trial Court framed Issue No. 1 to the effect whether the suit was maintainable for want of registration of firm amongst other issues. After recording the evidence, the Trial Court held that the plaintiff has been able to prove that deed of dissolution dated 14-4-1973 was forged document and it was not binding upon him. The Trial Court also held that the plaintiffs has been able to prove that the firm known as Novelty House was liable to be dissolved from the date of filing o