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1987 Supreme(Guj) 87

Gujarat High Court
Judgename :A.P.RAVANI
HARIJAN BOOT HOUSE, AHMEDABAD - Appellant
Versus
REGISTRAR OF FIRMS - Respondent
S.C.A. 2634 of 1987
Decided On : 09/11/1987

Advocates Appeared: H.B.ANTANI, P.V.Nanavati

Headnote:

Indian Partnership Act 1932 - Sections 58 59 61 62 63 and 69 - Registrar of Firms - Petitioner firm submitted an application Should application for recording of changes in constitution of a firm be submitted within a specified time limit and should same be submitted in person and not by post - Aforesaid question has arisen in context of facts narrated herein below - Petitioner firm submitted an application on by registered post and requested that aforesaid changes in constitution of the firm be noted in relevant records of Registrar of firms – Held, Respondent Registrar of Firms was clearly wrong when he rejected the application submitted by petitioner on ground that same was sent by post - Section 58 of Act clearly provides that application may he sent by post - Section 63 of Act only provides that in event of change in constitution of firm or in the event of dissolution of firm person concerned may give notice to Registrar of such change or dissolution - There is nothing in section enjoining a duty upon firm or its partners to submit application in person - Application can be submitted by post - Therefore respondent Registrar of Firms was not justified in rejecting applications when same were submitted by post - Petition allowed

A. P. RAVANI, J.

( 1 ) SHOULD the application for recording of changes in the constitution of a firm be submitted within a specified time limit and should the same be submitted in person and not by post? The aforesaid question has arisen in the context of the facts narrated harainbelow.

( 2 ) PETITIONER firm stated its business some time in the year 1946. The firm got itself registered with the Registrar of Firms on 10/03/1955 Thereafter a partner Balvantbhai Dahyabhai Modi died on 5/05/1976 Thus there was a change in the constitution of the firm. But the same was not recorded in the register of firms with the Registrar of Firms. Again another partner Narshibhai Chandulal Nanavati retired from the firm on 27/06/1986 This change in the constitution of the firm was also not got recorded with the Registrar of Firms. However the registration of the firm as originally recorded on 10/03/1955 continued.

( 3 ) THE petitioner firm submitted an application on 27/06/1986 by registered post and requested that the aforesaid changes in the constitution of the firm be noted in the relevant records of the Registrar of firms. The application was rejected by the office of Registrar of firms on the ground that the application should not have been sent by post but the same should have been submitted in person. Thereafter the petitioner submitted two separate applications dated 4/08/1986 requesting to record the change on account of death of one of the partners Shri Balvantbhai Dahyabhai Modi which took place on 5/05/1976 Another application dated 27/10/1986 was submitted for effecting change in the constitution of firm on account of retirement of one of the partners i. e. Narshibhai Chandulal Nanavati. Both those applications have been rejected by the respondent on the ground that the applications for recording change in the constitution of firm have been submitted after a period of about 10 years in one case and in another case the application has been submitted after a period of about 4 years and 6 months. Thus in the opinion of the respondent the applications were inordinately delayed and were submitted after the lapse of a reasonably long time. The respondent also held that in the application for recording change the applicant is required to make following declaration:" We/i also declare that upto the date of submission of this application there has not been any change in any of the particulars previously intimated save and except the change notified above. "in view of the aforesaid declaration required to be made in the application the respondent held that the application for recording change in the constitution of the firm should be submitted before another change in the constitution of the firm takes place. According to the respondent if an application is submitted for recording two changes in the constitution of the firm simultaneously by one application only then in that case the aforesaid declaration will become meaning less. Hence the respondent authority held that the length of reasonable time would be any time before another change in the constitution of the firm takes place. Therefore before another change takes place the application should be made. The respondent held that registration of firm is voluntary and once the firm is registered all the provisions of law are applicable to such firm and hence when the application is not made within reasonable time the same was required to be rejected. The petitioner firm has challenged the legality and validity of the aforesaid order.

( 4 ) IT may be noted that there is no provision in the Indian Partnership Act 1932 which makes obligatory on the part of a firm to get itself registered with the Registrar of Firms. The registration of a partnership firm is optional. Sections 58 59 63 and 69 of the Indian Partnership Act are the relevant provisions which are required to be read together. Section 58 of the Act provides that registration of firm may be effected at any time by sending by post or










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