The expression "persons suing" in Section 69(2) of the Partnership Act means "all the partners of the firm who are its partners at the time of the institution of the suit".

( 1 ) WHEN Suit No. 582 of 1967 came up for hearing before S. S. Chadha J. on 30th September, 1975, on the original side of this Court, the learned Judge noticed that there was a conflict of judicial opinion as regards the scope of the expression "persons suing" in Section 69 (2) of the Indian Partnership Act, 1932. Considering that the said question of law is one which arises frequently in suits instituted by firms and, therefore, requires to be decided by a larger Bench, the learned Judge referred the following question :-

"whether the expression "persons suing" in Section 69 (2) of the Act means "all the partners of the firm who were its partners at. the time of the accrual of the cause of action" or it means" all the partners of the firm who are its partners at the time of the institution of the suit" ?"

IT is thus that this matter has. come up before us for our opinion on the aforesaid question of law.

( 2 ) FOR a proper appreciation of the question that has been referred, it is necessary to state briefly the facts of the case. The plaintiff firm was constituted under the name of M/s. Shaaker Housing Corporation, Tilak Nagar, New Delhi, and a deed of partnership. Ex. Public Witness 5/1, was executed on 1st November, 1959, between Sarvashri Raghbir Singh, Net Ram, Tek Chand,hari Shanker Bhargava, Lala Matu Mal Gupta and Lala Moti Ram. Exhibit D. 5 is a certified copy of. Form "a", and it shows that the firm was registered on 9th June, 1960, with the aforesaid six persons as partners of the firm, M/s. Shanker Housing Corporation. The date of entry of the aforesaid six persons is shown as November 1, 1959. It is the admitted case of both the parties that Net Ram retired on 29th August, 1964. According to paragraph 2 of the plaint, Tek Chand died on 4th December, 1966. Exhibit D. 6 is a certified copy of Form "a" Which was admitted as evidence, with the consent of the counsel for the parties. It shows that Net Ram retired on 29th August, 1964, that his son, Mohinder Singh joined the partnership on the same date, 29th August, 1964, that Tek: Chand was no longer a partner with effect from 4th December, 1966, and that his son, Mahabir Singh, joined the partnership on 5th December, 1966. The said entries, however, were all made by the Registrar in the Register of Firms on 28th July, 1972 and 23rd August, 1972.

( 3 ) IT is alleged in paragraph 6 of the plaint, that an urgent meeting of the partnership was called on 29th August, 1964, to consider the request of Net Ram for his retirement from the partnership, that the terms of retirement offered by the retiring partner were considered and settled on that day by the remaining partners, that the same were reduced to writing, confirmed and signed by the partners, and that a copy of the proceedings of the said meeting containing the decision of the partners was attached to the plaint. The minutes of the proceedings of the meeting and the deed of retirement halve been proved and marked as Exhibit D. I and Exhibit P. 7 respectively. According to Exhibit P. 7, it was decided that the cash payments made up-to-date to Chaudhry Attar Singh, son of Ram Saran of village Badelaf, Delhi, for the purchase of his land amounted to Rs. 19,680/, and that the said amount was decided to be debited to Net Ram and all rights in the said land should belong to Net Ram who woulde responsible to have the sale registered and mutation of the land effected in his name to which the other partners of the firm would have no Objection.

( 4 ) THE suit. No. 582 of 1967, was instituted on 25th August, 1967, by the plaintiff, M/s. Shanker Housing Corporation, Tilak Nagar, New Delhi, through Shri Hari Shanker Bhargava, partner, for the recovery of a sum of Rs. 26,000. 00 made up of the aforesaid sum of Rs. 19,680. 00 , which Net Ram had agreed to pay to the partnership, and Rs. 6,320. 00 by way of interest thereon calculated at the alleged customary market rate of one rupee per cent per month, ag