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2024 Supreme(Guj) 1772

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
DIVYESH A. JOSHI, J.
PATHIK UDAYAN BHATT - Applicant
Versus
M/S SHAKTI INFOTECH & ORS. – Respondents
R/CIVIL REVISION APPLICATION NO. 519 of 2019
Decided On : 19-12-2024

Advocates Appeared:
For the Applicant : NATASHA SUTARIA.

IMPORTANT POINT
A suit cannot be instituted by an unregistered partnership firm, as per Section 69 of the Indian Partnership Act, rendering such suits barred by law.

Headnote:

(A) Code of Civil Procedure, 1908 - Section 115, Order VII Rule 11 - Indian Partnership Act, 1932 - Section 69 - Civil Revision Application against rejection of application to dismiss suit - The court found the suit barred by law due to non-registration of the partnership firm, leading to dismissal of the plaint. (Paras 1, 26)

(B) Judicial Comity - Courts of coordinate jurisdiction must maintain consistent opinions on identical facts to avoid judicial anarchy. (Paras 22, 24)

(C) The court emphasized the importance of adhering to precedent and the doctrine of Stare Decisis to maintain harmony in the judicial system. (Paras 23, 24)

Facts of the case:

The respondents filed a suit against the applicant for misuse of software after his disassociation from their partnership firm, claiming he sold their software without consent.

Findings of Court:

The trial court's rejection of the plaint was based on the lack of evidence of the firm's registration, making the suit unsustainable.

Issues: The key issues were whether the suit was barred by law due to non-registration of the partnership firm and the necessity for consistent judicial opinions.

Ratio Decidendi: The court ruled that a suit could not be instituted by an unregistered firm, reaffirming the necessity of adherence to legal provisions governing partnerships.

Result: The impugned order was quashed and the plaint was rejected.

JUDGMENT :

(DIVYESH A. JOSHI, J.)

1. This Civil Revision Application filed under Section 115 of the Code of Civil Procedure, 1908 is arising out of the order 04.09.2019 passed by the learned 2nd Additional Civil Judge & Judicial Magistrate, First Class, Vadodara, whereby the application submitted by the applicant-original defendant under Order VII Rule 11 of the Civil Procedure Code, 1908 (for short ‘CPC’) in the suit filed by the Respondents-original plaintiffs came to be rejected.

2. The facts emanating from the captioned Civil Revision Application are that the respondent No.1 herein is the partnership firm engaged in the business of sale of Cheque Book Printing Software/CTS Software as also working in the field of Annual Maintenance Contract of the said Softwares by way of AMC, and the respondent Nos.2 to 3 are its partners, who preferred the Regular Civil Suit No.600 of 2016 against the applicant herein, seeking declaration and permanent injunction against the use of Cheque Book Printing Softwares CTS Softwares, wherein they have claimed that the present applicant was earlier working and assisting in the respondent No.1-Partnership Firm as the Software Developer till 17.01.2016. Thereafter, the applicant disassociated himself with the said partnership firm on his own, and, therefore, the applicant no longer remains to be the associate of the respondent No.1-partnership firm. The respondents have also claimed in the suit that Cheque Book Printing Softwares/CTS Softwares are created by them and subsequently got it registered to prevent it from any infringement. In short, the said softwares are the registered softwares being used by the respondents since long. It is also alleged in the suit that the applicant herein was being paid on mutual agreed terms, i.e., based on installation of the said sold softwares, and during the applicant’s work tenure with the respondent No.1-firm, he was made to understand by the respondents about the basic fundamentals of marketing of sale of their above mentioned properties as also taught him about how to carry on the AMC works for those sold out softwares which were installed at the different places. The same was done by the respondents because of the utmost good faith and confidence they had in the applicant.

3. It is also averred in the suit that the applicant has misused the above mentioned properties of the respondents at various Banks and Financial Institutions in the market without prior written consent and permission of the respondents herein. It is alleged in the said suit that the applicant herein was caught by the respondents for doing the illegal acts of cheating and spoiling the name of the respondents in the market. The respondents have claimed that the applicant himself had confessed through e-mail dated 29.09.2014 that he had directly sold out the software of the respondents without even obtaining their consent and permission. Thereafter, the applicant gave assurances vide several communications and e-mails that he would not again commit such type of illegality and irregularity, and upon such assurance being given by the applicant, he was again reinstated in the said firm by the respondents. Thereafter, the applicant, on his own, left the respondent-Firm. However, after some time, it came to the knowledge of the respondents that the applicant, after leaving their firm, despite giving written assurances that he would not commit any such illegal activity again, he has used the software of the respondents in the market without obtaining the consent or permission of the respondents, which compelled the respondents to file the aforementioned suit.

4. Upon summons being served to the applicant, the applicant appeared through his advocate and filed an application under Order VII Rule 11 of the CPC for rejection of the suit/plaint on the ground that the trial court concerned has no jurisdiction as per the relevant provisions of law as well as on other grounds. The said application came

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