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1958 Supreme(Cal) 283

HIGH COURT OF CALCUTTA
K. C. DAS GUPTA,R. S. BACHAWAT, JJ.
Manilal and Sons
Versus
Purushottam Umedbhai and Co.
A. F. O. O. No. 108 of 1957
Decided On : 18-12-1958

Headnote:

CIVIL PROCEDURE - Amendment of plaint - Substitution of names of individual partners in place of firm name - Whether misdescription or non-existent person - Power of Court to allow amendment - Limitation.

Fact of the Case:

A suit was instituted in the name of a partnership firm carrying on business outside India, which is not permitted under Order XXX, Rule 1 of the C. P. C. An application was made to substitute the names of the individual partners in place of the firm name. The trial court dismissed the application, holding that the suit was a nullity and could not be amended.

Finding of the Court:

The High Court held that the description of a plaintiff by a firm name in a case where the Code of Civil Procedure does not permit a suit to be brought in the firm name should properly be considered a case of description of the individual partners of the business and, as such, a misdescription, which in law can be corrected and should not be considered to amount to a description of a non-existent person.

Issues: 1. Whether the use of the firm name in the plaint was a misdescription or an indication of a non-existent person? 2. Whether the Court had the power to allow the amendment of the plaint by substituting the names of the individual partners? 3. Whether the amendment would be barred by limitation?

Ratio Decidendi: 1. The Court held that the use of the firm name in the plaint was a misdescription of the individual partners of the business, and not an indication of a non-existent person. The Court reasoned that the firm name is a compendious mode of describing all the partners of a firm, and that the Court and the defendant were well aware of the real existence of the plaintiffs. 2. The Court held that it had the power to allow the amendment of the plaint by substituting the names of the individual partners under Section 153 and Order VI, Rule 17 of the Code of Civil Procedure, which provide for the amendment of defects and errors in proceedings and the amendment of pleadings, respectively. 3. The Court held that the amendment would not be barred by limitation, as the substitution of the names of the individual partners would not amount to the addition of new parties for the purposes of limitation.

Final Decision: The High Court allowed the appeal, set aside the order of the trial court, and made an order for amendment of the plaint as prayed for, subject to the payment of costs by the appellants.

Judgement

DAS GUPTA, C.J. :- This appeal raises the question whether when a suit has been instituted in the name of a partnership firm carrying on business outside India as plaintiff, a procedure which is not permitted by Order XXX, Rule 1 of the C. P. C. under which only partnership firms carrying on business within India may institute suits in the firm name, the defect can be cured later on by substituting in place of the firm name, the name of the individuals, who are the partners of the firm, by way of amendment. The plaintiffs name as mentioned in the plaint in the present suit is : "Manilal and Sons, a firm carrying on business at No. 11A Malacca Street, Singapore". It was subscribed in these words :

"Manilal and Sons by their constituted attorney D.P. Dunderdale".

The verification was also by the same gentlemen, D.P. Dunderdale, describing himself as constituted attorney of Manilal and Sons. This suit was instituted on 31-3-1951. Written statement was filed by the defendants, but no objection was taken therein to the defect indicated above namely, that though not permitted by the Code of Civil Procedure or any rules of the Original Side of this Court, the suit had been brought in the name of the partnership firm carrying on business outside India. The suit appeared in the Peremptory List of P.B. Mukharji, J., for the first time on 3-1-1957 and appeared therein for several days. On 20-1-1957, the defendants Solicitor informed the plaintiffs Solicitors that as the plaintiff was a firm carrying on business at Singapore, an objection would be taken on behalf of the defendant at the hearing of the suit that the suit as framed was null and void and not maintainable. In view of this information and with a view to cure, if possible, the defect, as pointed out by the defendants Solicitor, an application was made in the name, again of Manilal and Sons, the plaintiff, praying for substitution of the names of the individual partners of the firm in place of the firm name. It was averred that Dahyabhai Trikambhai Patel, Pravinbhai Dayabhai Patel, Gangaben Iswarbhai Patel, Bachubhai Manubhai Amin and Manubhai Maganbhai Amin had at all material times been and were still the partners of the plaintiff firm; that the suit was intended to be instituted on their behalf, but that they had been collectively mentioned in the firm name and this being a mere misdescription, the plaint should be allowed to be amended by bringing on the record the names of the individual partners. If the amendment as prayed for be allowed, the plaintiffs name would appear thus : "Dahyabhai Trikambhai Patel, Pravindbhai Dahyabhai Patel, Gangaben Iswarbhai Patel, Bachubhai Manibhai Amin and Manubhai Maganbhai Amin carrying on business under the name and style of Manilal and Sons, at No. 11A Malacca Street, Singapore". Consequential amendments in the body of the plaint by using the plural plaintiffs instead of the singular were also prayed for. To these the defendant objected the main ground of the objection being that as the provisions of Order XXX, Rule 1. of the C. P. C. were not applicable to the case of a foreign firm, the effect of a suit being filed by a foreign firm in the firm name was that the suit was by an entity which had no existence in the eye of law. It was also urged that there was no proper application even now on behalf of the individual partners and so the application should not be allowed. It was further urged that, in any case, the application should not be allowed as the claims In the suit were now barred by limitation. It was further stated that Mr. Dunderdale who signed and verified the plaint as on behalf of Manilal and Sons had not the proper authority to do so.

2. P.B. Mukharji, J., who heard the application, was of opinion that this was not a case of misdescription but that the legal position was that the firm could not be legally recognised as a plaintiff and the plaint was a mere nullity of process. He also held that there was no scope of































































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