IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Aravind Kumar, Ashutosh J. Shastri, JJ.
Dhanesh Bhadarmal Jain - Appellant
Vs.
Registrar Of Firm - Respondent
Letters Patent Appeal No. 19 of 2023
In Special Civil Application No. 22223 of 2022
With
Civil Application (For Stay) No. 1 of 2022
Decided On : 10-01-2023
Civil Procedure Code, 1908 – Section 9 – Indian Partnership Act, 1932 – Section 42, 63, 58 – Court to try all civil suits unless barred – Compulsory dissolution – Learned advocates appearing appellants second respondent have elaborately canvassed their arguments appropriate to dispose of this appeal particularly having bestowed precious judicial adjourning this matter interest of justice dispute is between second respondent appellants though impugned order has been passed first respondent – Held, Second respondent armed with the order Special Civil Application of insisted for first respondent to adjudicate his claim and by virtue of such directions having been issued by learned Single Judge Registrar of Firms was per forced to consider claim and accept same by passing a non-speaking order – Court that impugned order being a non-speaking for simple reason that it does not even remotely suggest as to how he has exercised power under which provision of law basis on which such power is being exercised case laws which has been pressed into service and relied upon in order was applicable to facts on hand – Appeal is allowed.
JUDGMENT :
Aravind Kumar, J.
1. Though the matter is listed for admission, the learned advocates appearing for the appellants and the second respondent have elaborately canvassed their arguments. Hence, we have thought it fit and appropriate to dispose of this appeal particularly having bestowed precious judicial time, since adjourning this matter to any other date would not be in the interest of justice. Essentially the dispute is between second respondent and the appellants though the impugned order has been passed by the first respondent. Hence, Mr.Sahil Trivedi, learned Assistant Government Pleader has accepted and waived notice for respondent No.1.
2. In this Letters Patent Appeal, the correctness and legality of the judgment dated 15.12.2022 passed in Special Civil Application No.22223 of 2022 has been called in question.
BRIEF BACKGROUND OF THE CASE :
3. Appellants herein challenged the order dated 05.09.2022 passed by respondent No.1 whereunder first respondent herein has declared the partnership firm M/s.Samkit Infracon, having Registration No.GUJAH 1100224 as dissolved and has further ordered that said firm is being treated as dissolved.
4. The partnership firm namely M/s.Samkit Infracon was registered with the first respondent on 25.03.2016 with five partners. There was a reconstitution of the said firm on 12.08.2016 namely Mr.Dhanesh Bhadarmal Jain and Mr.Bhadarmal Modiram Jain were continued as partners and the remaining three partners retired. The said partnership firm is carrying on the business of land and building development, civil construction and other businesses incidental thereto. The firm is said to have executed a Sale Deed dated 28.12.2018 in favour of the second respondent i.e. M/s.Madhav Associates in respect of which Special Civil Suit No.207 of 2020 has been filed by the partnership firm and same is pending before the Civil Court, Ahmedabad. It also appears that several disputes have arisen between writ applicants and the second respondent. One of the partners of the firm namely Shri Bhadarmal Modiram Jain expired on 16.08.2021. Thereafter, a Deed of Change in Partnership came to be entered into between the then erstwhile partners Shri Dhanesh Bhadarmal Jain and Smt.Babita Dhanesh Jain under the deed dated 18.09.2021. Said partnership deed was presented for registration before the first respondent – Registrar of Firms, who registered the same on 16.12.2021 and was approved by the said authority, as evident from Form No.C issued by the Registrar of Firms found at page 24/E of the appeal compilation.
5. In the meanwhile, the second respondent is said to have ignited proceedings before the Real Estate Regulatory Authority (RERA) against the Partnership Firm which had filed Special Civil Suit No.207 of 2020. Being aggrieved by acceptance of the change and challenging the same, Special Civil Application No.13610 of 2022 was filed wherein 2nd respondent sought for declaring that the partnership firm had stood dissolved by virtue of application of Section 42 of the Indian Partnership Act, 1932. During the pendency of the petition, a draft amendment was moved by petitioner therein namely 2nd respondent herein which was granted on 21.07.2022 whereunder petitioner therein sought for a direction to the respondent to pass orders on the representation said to have been preferred by the writ applicant therein (2nd respondent herein). Learned Single Judge of this Court without issuing notice to the firm which would ultimately be the aggrieved party directed the first respondent to pass appropriate reasoned order on the representation dated 25.07.2022 filed by the writ applicants within a period of six months and strangely extended an opportunity of hearing to the writ applicant also. On the basis of said order, first respondent herein namely the Registrar of Firms by impugned order dated 05.09.2022 has held that partnership firm is treated as dissolved. Being aggrieved by the same, a writ application was filed by the ap
Sharad Vasant Kotak and others vs. Ramniklal Mohanlal Chawda and another reported in AIR 1998 SC 877
SupremeToday
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Important PointChanges in the constitution of a firm does not affect the registration once made but information about changes have to be given and failure to comply attracts penalties u/s 69-A of the....
The main legal point established in the judgment is that the dissolution of a partnership firm entitles a partner to seek settlement of accounts and interim reliefs under Section 9 of the Arbitration....
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Partners cannot unregister without due process; rights remain unless valid documents executed under the Indian Partnership Act.
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Court clarified validity of partnership dissolution and subsequent registrations, emphasizing the necessity of considering all relevant documents in property ownership disputes.
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