SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2016 Supreme(Del) 4248

IN THE HIGH COURT OF DELHI AT NEW DELHI
DEEPA SHARMA, J.
PINKY JAIN & ANOTHER – Plaintiffs
Versus
M/S AMEYA UNIVERSAL PROJECT PVT. LTD. – Defendant
C.S. (OS) No. 624 of 2013 & I.A. No. 9608 of 2015 & O.A. No. 181 of 2015
Decided On : 01-12-2016

Advocates Appeared:
For the Plaintiffs : Mr. Dinesh Kumar Gupta and Mr. Vidit Gupta.
For the Defendants : Mr. Vikas Dhawan, Mr. S.P. Das and Mr. S. Panda.

The main legal point established in the judgment is the application of Section 69 of the Partnership Act, which governs the maintainability of suits by partners and the requirement for registration of partnership agreements.

Headnote:

Partnership Agreement - Suit Maintainability - Partnership Act, 1932, Section 69

Fact of the Case:

The plaintiff filed a suit seeking recovery of funds and dissolution of partnership based on a Memorandum of Understanding (MoU) with the defendant. The defendant argued that the suit was barred under Section 69 of the Partnership Act, as the MoU was unregistered and the plaintiffs had not pleaded any grounds for dissolution of the partnership.

Finding of the Court:

The court found that the suit was indeed barred under Section 69 of the Partnership Act, as the MoU was unregistered and the plaintiffs had not provided any grounds for dissolution of the partnership.

Issues: The main issue was the maintainability of the suit under Section 69 of the Partnership Act, based on the unregistered MoU and lack of grounds for dissolution of the partnership.

Ratio Decidendi: The court applied Section 69 of the Partnership Act, which prohibits the institution of a suit by a partner against the firm or any person alleged to be a partner unless the firm is registered and the person suing is shown in the Register of Firms as a partner. The court emphasized that the averments in the plaint are crucial in deciding the maintainability of the suit.

Final Decision: The court held that the suit was not maintainable under Section 69 of the Partnership Act and dismissed the suit along with pending applications.

JUDGMENT :

DEEPA SHARMA, J.

1. The plaintiff had filed an O.A. No. 181/2015 against the order of the Joint Registrar dated 17.04.2015 whereby the plaintiffs' request for directions to the defendant to permit the inspection of its documents was rejected. When the case was fixed for arguments on this O.A. the defendant raised the issue about maintainability of suit on the ground that the suit relates to an unregistered partnership agreement and in view of Section 69 of the Partnership Act, 1932 (hereinafter referred to as 'the Act') it is barred and is to be rejected. It is argued that one of the reliefs the plaintiffs have sought is for dissolution of partnership.

2. The plaintiffs have controverted the above contentions.

3. The relevant facts in brief are as follows:

The plaintiffs have filed a suit on a Memorandum of Understanding (MoU) dated 10.07.2010 entered into between plaintiffs and the defendant in respect of business in the project namely “The Saphhire” in Sector-49, Gurgaon. Plaintiffs have stated that they had contributed a sum of Rs.5.5 crores into that project and they were assured guaranteed profit of Rs.5,27,20,964/- and were also entitled to recover 50% of the profit. This suit was filed by the plaintiffs for recovery of Rs.2,03,60,482/- and they have also sought preliminary decree directing the defendant to render the true and correct account relating to the business carried out in terms of MoU dated 10.07.2010 along with interest and also prayed for the dissolution of the partnership.

4. The defendant has taken the plea that Section 69 of the Act prohibits the filing of a suit by a partner against another partner or against the partnership firm unless either the partnership stands dissolved or the partnership deed is a registered document. It is argued by the learned counsel for the defendant that neither the MoU; which the plaintiffs alleges to be a partnership agreement; is a registered document nor plaintiffs have pleaded that the partnership was dissolved at any point of time rather they have sought dissolution without pleading any grounds for such dissolution.

5. It is argued by the learned counsel for the defendant that the entire suit is based on the premise that there is a partnership agreement between the parties and thus the present suit is barred under Section 69 of the Act as the MoU is an unregistered document. It is further argued that while deciding the maintainability of the suit, the court has to take into consideration the averments of the plaint. It is also argued that though the plaintiffs have sought dissolution of partnership in their prayer clause, no averment is there in the plaint showing that the plaintiffs are seeking dissolution of the partnership. It is further argued that there is no averment in the plaint that the firm stood dissolved nor does the plaint discloses that the suit is for enforcement of any right to sue for the dissolution of the partnership. It is further submitted that Chapter VI of the Act deals with the dissolution of partnership on several contingencies enumerated therein and the plaint is silent about it. It is further submitted that the plaintiffs have not in the cause of action paragraph i.e. para 16 of the plaint have shown any cause for dissolution of partnership. It is further argued that there is no whisper about the fact that the partnership stood dissolved or that they were seeking dissolution of the partnership.

6. It is argued by the learned counsel for the plaintiffs that the partnership was dissolved before the plaintiffs have filed the suit and the suit is not hit by Section 69 of the Act.

7. I have given thoughtful consideration to the rival contentions of the parties.

8. It is a settled proposition of law that under Order VII Rule 11 of the Code of Civil Procedure (CPC) in six classes of cases mentioned in clauses (a) to (f), the court is empowered to reject the plaint suo motu at any stage even after filing of the written statement. While considering the




























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top