HIGH COURT OF CALCUTTA
C.K. Banerjee, J.
State Bank of India
Vs.
Nu Built Furniture Pvt. Ltd. (In Liquidation) & Ors.
AND
Nu Built Furniture Co.
Vs.
State Bank of India
Original Side Suit No. 423 of 1971 and Suit No. 673 of 1981
Decided on : February 27 and 28, 1985
EXECUTION OF DECREE - ATTACHMENT - SHARE OF PARTNER IN PARTNERSHIP FIRM - PARTNER AS KARTA OF JOINT HINDU MITAKSHARA FAMILY - DECREE AGAINST PARTNER IN INDIVIDUAL CAPACITY - EXECUTION AGAINST PARTNERSHIP INTEREST - ORDER 21, RULE 49(2), C.P.C. - INTERPRETATION.
Fact of the Case:
The State Bank of India (Bank) obtained a decree against Nu Built Furniture Private Limited (in liquidation) and guarantors Kumar Kasyab and Mahendra Kumar Kasyab, who were partners in Nu Built Furniture Co., a partnership firm. The Bank filed an execution application seeking to attach and sell the interest of Kumar Kasyab and Mahendra Kumar Kasyab in the partnership firm to satisfy the decretal dues. Nu Built Furniture Co. also filed an application for execution of its decree against the Bank, seeking payment of a sum deposited by the Bank with its advocates, Sandersons & Morgans, under court orders.
Finding of the Court:
1. The court held that a decree obtained against a partner in his individual capacity, rather than as a partner of the firm, could be executed against the partner's interest in the partnership property under Order 21, Rule 49(2) of the Code of Civil Procedure (C.P.C.). 2. The court interpreted Order 21, Rule 49(1) as applying to cases where the decree was passed against the firm or against the partners as such, while Order 21, Rule 49(2) applied to cases where the decree was passed against a partner in his individual capacity. 3. The court found that the Bank's decree against Kumar Kasyab and Mahendra Kumar Kasyab was not obtained against them in their capacity as partners of the firm, and therefore, the decree could be executed against their individual interest in the partnership property under Order 21, Rule 49(2). 4. The court also held that the application filed by Nu Built Furniture Co. for payment by garnishee was not maintainable as it was not made in the proper form and was not accompanied by a certified copy of the decree.
Issues: 1. Whether a decree obtained against a partner in his individual capacity could be executed against the partner's interest in the partnership property. 2. Whether the Bank's decree against Kumar Kasyab and Mahendra Kumar Kasyab could be executed against their individual interest in the partnership property. 3. Whether the application filed by Nu Built Furniture Co. for payment by garnishee was maintainable.
Ratio Decidendi: 1. The court relied on the provisions of Order 21, Rule 49(1) and (2) of the C.P.C. to hold that a decree obtained against a partner in his individual capacity could be executed against the partner's interest in the partnership property. 2. The court interpreted Order 21, Rule 49(1) as applying to cases where the decree was passed against the firm or against the partners as such, while Order 21, Rule 49(2) applied to cases where the decree was passed against a partner in his individual capacity. 3. The court found that the Bank's decree against Kumar Kasyab and Mahendra Kumar Kasyab was not obtained against them in their capacity as partners of the firm, and therefore, the decree could be executed against their individual interest in the partnership property under Order 21, Rule 49(2).
Final Decision: 1. The court allowed the Bank's execution application and ordered that the interest of Kumar Kasyab and Mahendra Kumar Kasyab in the partnership property be charged with the payment of the amount due under the decree. 2. The court appointed a Receiver to take possession of the share of Kumar Kasyab and Mahendra Kumar Kasyab in the profits of the partnership firm. 3. The court dismissed the application filed by Nu Built Furniture Co. for payment by garnishee.
These are the two applications which are heard together by consent of parties. One of the applications is in the suit of State Bank of India against Nu Built Furniture Private Limited (In Liquidation) and other being the Suit No 423 of 1971 The decree in this suit was passed on the 7th December, 1983 and this application has been made in execution of the said decree The other application is also for execution of the decree passed in the suit of Nu Built Furniture Co. against State Bank of India being suit No. 673 of 1981.
2. In the execution application made by State Bank of India in its suit prayers have been made• inter alia, for adjustment of the decretal dues of Nu Built Furniture Co. in Suit No. 673 of 1981 for the sums which represents the shares and, interests of the judgment debtors Nos. 2 and 3 in the Stale Bank of India's suit being 90% of the interest of the said judgment debtors in the firm Nu Buiit Furniture Co. and for further directions for execution of the balance. The other prayer is that the interest of the Judgment debtors Nos. 2 and 3 namely Kumar Kasyab and Mahendra Kumar Kasyab in the said firm of Nu Built Furniture Co. be determined and leave be granted to serve notice all the said firm on behalf of all the partners Such notice has already been served and all the partners are before the Court. The other material prayer is that the properties and assets being furniture, stock-in-trade etc and profits of the firm Nu Built Furniture Co. be attached and a Receiver be appointed over the same to take possession thereof with direction to sell the same to the extent of the interest of the judgment debtors No. 2 and 3 of 90% or so much that may be found upon enquiry by this Court and Receiver be directed to pay the net sale proceeds to the plaintiff decree holder State Bank of India in pro tanto satisfaction of its claim.
3. Mr. Suresh P. Majumdar, learned counsel for the decree holder State Bank of India submitted that the State Bank's suit was against the company in Liquidation and guarantors. The defendants nos. 2 and 3 namely, Kumar Kasyab and Mahendra Kumar Kasyab were the guarantors. They are partners of the firm Nu Built Furniture Co. and held 90% shale in the firm that is Kumar Kasyab 50% and Mahendra Kumar Kasyab 40% The affidavit-in-opposition filed in this application on behalf of the defendants by Rakesh Kasyab affirmed on 13th December, 1984 wherein a copy of the deed of partnership dated 18th December, 1973 constituting the firm Nu Biut Furniture Co. has been annexed, discloses that Kumar Kasyab also known as Bhupendra Kumar Kasyab has 50% share in the said firm as the Karta of his Mitakshara Hindu undivided family while Mahendra Kumar Kasyab as such Karta of his Mitakshara Hindu undivided family has 40% share in the said firm. It was submitted by Mr. Majumdar that the individual share of the said Kumar Kasyab and Mahendra Kasyab even though they were Kartas of the Hindu undivided family would be answerable for the claim of the bank, In support of his contention Mr. Majumdar cited two decisions of the Privy Council. (i) Deen Cayal Lal v. Jugdeep Narain Singh reported in 4 Indian Appeal 247. Here the rights and proprietory and Mokurruri title and share of a Hindu father in the joint family estate under the Mitakshara Law having been seized and sold in execution of a decree against the father, possession of the whole estate was delivered to the appellant as the purchaser. The son of the judgment debtor filed a suit to recover the same on the ground that the said properties could not be sold in execution proof of legal necessity for the debt. It was held by the Judicial Committee that assuming that a member of a Mitakshara joint family might not dispose of his share in the joint estate by voluntary conveyance without concurrence of his coparceners, yet the appellant, as the purchaser at an execution sale of such share, was entitled to ascertain the same by such partition as the judgment debtor mig
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.