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JITENDRA JAIN, A. S. CHANDURKAR
Samrat Span Realties, Through its Partner – Rajendra Kesharchand Bora – Appellant
Versus
Registrar of Firms, Pune – Respondent
JUDGMENT :
(A.S. Chandurkar, J.) :
1. RULE. Rule made returnable forthwith and heard the learned counsel for the parties.
2. The refusal on the part of the Registrar of Firms to record change in the constitution of the Partnership Firm consequent upon expulsion of some partners is under challenge in this writ petition filed under Article 226 of the Constitution of India.
3. The facts relevant for adjudicating the writ petition are that it is the case of the petitioner-Firm that it’s partners, along with respondent nos.2 to 6, constituted a Partnership Firm - Firm that was duly registered under the provisions of the Indian Partnership Act, 1932 (for short, “the Act of 1932”). The Firm consisted of thirteen partners. Eight partners issued a notice to the remaining partners on 25th June 2011 stating therein that since the said noticees failed to comply with the contractual obligations mentioned in the Partnership Deed dated 14th August 2009, they were being expelled from the Firm. This notice was replied by respondent nos.2 to 6 denying the allegations as made and questioning the legality of their expulsion. Based on such action of expulsion, the partners claiming to constitute the Firm,
Expulsion of a partner is recognized as a mode of retirement resulting in a change in the constitution of a registered Firm, and the relevant provisions and rules provide for the procedure to report ....
The central legal point established in the judgment is that when the Registrar fails to exercise statutory duties under the Partnership Act, the court is entitled to grant a positive direction.
Important PointChanges in the constitution of a firm does not affect the registration once made but information about changes have to be given and failure to comply attracts penalties u/s 69-A of the....
The main legal point established in the judgment is that the dissolution of a partnership firm under the Indian Partnership Act, 1932, and the reconstitution of the firm are governed by specific prov....
Point of law: Removal as partner - Forcible continuance of petitioner, as a partner of a Firm which is loaded with partnership disputes, has civil consequences also on the petitioner.
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