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1956 Supreme(Pat) 65

PATNA HIGH COURT
Raj Kishore Prasad, J.
Kuldip Thakur
Versus
Sheomangal Prasad Thakur
A.F.A.O. No. 407 of 1951 ;
Decided On : APRIL 13, 1956

A decree passed against an unregistered firm under Section 69(2) of the Partnership Act is not a nullity and is executable, as the executing court cannot go behind the decree to determine whether it was passed in contravention of Section 69(2).

Headnote:

PARTNERSHIP ACT - SECTION 69(2) - DECREE AGAINST UNREGISTERED FIRM - EXECUTION - JURISDICTION OF EXECUTING COURT - NULLITY OF DECREE - INTERPRETATION OF SECTION 69(2) - EFFECT OF APPELLATE COURT'S DECISION ON DECREE AGAINST NON-APPEALING DEFENDANTS - DISTINCTION BETWEEN LACK OF JURISDICTION AND IRREGULARITY IN EXERCISE OF JURISDICTION - SCOPE OF SECTION 47, CIVIL PROCEDURE CODE.

Fact of the Case:

A decree was passed against a firm and its partners, including the appellant, for recovery of money advanced for supply of coal. The appellant did not contest the suit or file a written statement, but was examined as a witness and admitted to executing the chitha on which the suit was based. On appeal by some of the defendants, the decree was set aside as against them on the ground that the suit was not maintainable due to non-registration of the plaintiffs' firm under Section 69(2) of the Partnership Act. The appellant, who did not appeal against the decree, objected to its execution on the ground that it was a nullity since the suit was not maintainable.

Finding of the Court:

The court held that the decree was not a nullity and was executable against the appellant. It reasoned that Section 69(2) of the Partnership Act only barred the institution of a suit by an unregistered firm, and did not affect the court's power to pass a decree. The court further held that the executing court could not go behind the decree to determine whether it was passed in contravention of Section 69(2), as the court that passed the decree had apparent jurisdiction to do so. The court also distinguished between lack of jurisdiction and irregularity in the exercise of jurisdiction, holding that the executing court could only refuse to execute a decree if it was passed without jurisdiction, and that an objection based on an alleged irregularity in the exercise of jurisdiction was outside the scope of Section 47 of the Civil Procedure Code.

Issues: 1. Whether a decree passed against an unregistered firm under Section 69(2) of the Partnership Act is a nullity. 2. Whether the executing court can go behind a decree to determine whether it was passed in contravention of Section 69(2) of the Partnership Act. 3. Whether an objection based on an alleged irregularity in the exercise of jurisdiction can be raised in execution proceedings under Section 47 of the Civil Procedure Code.

Ratio Decidendi: 1. Section 69(2) of the Partnership Act only bars the institution of a suit by an unregistered firm, and does not affect the court's power to pass a decree. 2. The executing court cannot go behind a decree to determine whether it was passed in contravention of Section 69(2) of the Partnership Act, as the court that passed the decree had apparent jurisdiction to do so. 3. An objection based on an alleged irregularity in the exercise of jurisdiction cannot be raised in execution proceedings under Section 47 of the Civil Procedure Code.

Final Decision: The appeal was dismissed, and the decree was held to be executable against the appellant.

Judgment

Raj Kishore Prasad, J.

1. This appeal by Judgment-debtor 1, arises out of his objection under Section 47, Civil P. C., on the ground, inter alia, that the decree under execution is a nullity, and, therefore, it could not be executed against him.

2. This objection was based on the following facts: The decree-holders were partners of a firm. On the basis of a chitha, executed by the present appellant, on behalf of the defendants firm, in respect of a certain transaction, the defendants were sued by the decree-holders for recovery of a certain amount of money advanced by them to the appellants firm for supply of coal, which it did not supply. The suit was contested by defendants 4 and 5 only.

The present judgment-debtor, who was defendant 1, did not appear and contest the suit, nor did he file any written statement. He was, however, examined as a witness, and he supported the plaintiffs claim, and admitted to have executed the chitha, which was the basis of the suit. The plea taken by defendants 4 and 5 was that the suit was not maintainable, because of non-registration of the plaintiffs firm, and, therefore, Sec. 69(2), Partnership Act was a bar to the suit.

The trial Court overruled this objection, and decreed the suit against all the defendants, including the present appellant. On appeal, by defendants 4 and 5 only, the decree, however, as against them was set aside, as the appellate Court held that the suit was not maintainable, but the decree against the rest,, including the appellant was affirmed. There was thereafter no further appeal by either the decree-holders, or by the present appellant. The decree-holders then put, the decree into execution against the present appellant, and two others, who were defendants 1 to 3.

3. The objection of the appellant was that as it had been found by the appellate Court, in the appeal by defendants 4 and 5, that the suit was not maintainable for non-registration of the firm of the plaintiff, and, therefore, no decree could be passed against defendants 4 and 5, no decree could be passed against the other defendants also; and as such the decree passed against the appellant was a nullity.

It was contended that when the suit had been held to be not maintainable, it must be deemed to be not maintainable against this appellant also, although he did not appeal against the decree to the Court of appeal below, nor even the appellate Court itself reversed the decree as against the present appellant, which it could do, and should have done, under Order 41. Rule 33. Civil P. C. It was, therefore, urged that the suit being not maintainable, no decree could have been passed against the appellant, and as such the decree was void and in-executable.

4. The learned Subordinate Judge, on appeal, in the present case, found that the partnership business of the plaintiff had not come to an end before the institution of the suit, in which the decree under execution was passed. He, however held that the executing Court could not go behind the decree, and determine the question, whether the decree had been passed without jurisdiction, in view of the fact that it was not disputed that the Court, which passed the decree under execution had apparently jurisdiction, both pecuniary and territorial as well as in respect of the judgment debtors person. He, therefore, held that, in such circumstances, it could not be said that the decree under execution was without jurisdiction, and a nullity; and as such in executable.

5. In the appeal before me, Mr. Baidyanath Prasad II, appearing for the appellant, has relied on Clause (2) of Sec. 69, Partnership Act, and contended that the decree having been passed in contravention of Sec. 69(2) of the Act, was a nullity, and, therefore, inexecutable.

6. Sec. 69(2) runs thus:

"No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have bee























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