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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANJEEV J.THAKER, J.
Splendid Infrabuild LLP & Ors. – Appellants
Versus
Manuben Nanubhai Bharvad & Ors. – Respondents
R/CIVIL REVISION APPLICATION NO. 11 of 2023
Decided On : 15-010-2025
| Table of Content |
|---|
| 1. overview of case background (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. defendant's arguments against the suit (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26) |
| 3. plaintiff's defense and rationale for maintaining suit (Para 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34) |
| 4. court's analysis on partnership dissolution (Para 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44) |
| 5. court's interpretation of specific performance rights (Para 45 , 46 , 47 , 48 , 49 , 50) |
| 6. illusory cause of action in suit (Para 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60) |
| 7. knowledge and limitations related to claims (Para 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69) |
| 8. legal stance on unregistered firms and partnership claims (Para 70 , 71 , 72 , 73 , 74 , 75 , 76 , 77) |
| 9. ancillary claims on specific performance and possession (Para 78 , 79 , 80 , 81 , 82 , 83) |
| 10. rejection of claims and legal principles involved (Para 84 , 85 , 86 , 87 , 88 , 89) |
| 11. conclusion on the grounds for dismissing the suit (Para 90 , 91 , 92 , 93 , 94 , 95 , 96 , 97 , 98 , 99 , 100) |
| 12. summary of legal infirmities and decision (Para 101 , 102 , 103 , 104 , 105 , 106) |
| 13. judgment outcome and order (Para 107) |
ORAL JUDGMENT
HONOURABLE MR.JUSTICE SANJEEV J.THAKER
TABLE OF CONTENTS I . INTRODUCTION…………………………………………………………… 2
II . SUBMISSIONS OF THE DEFENDANT – PETITIONER………………….. 3
III . SUBMISSIONS OF THE PLAINTIFF – RESPONDENT…………………. 16
IV. ANALYSIS……………………………………………………………………. . 19
CAUSE OF ACTION…………………………………………………………………… 21
Section 42 (C) of the Partnership Act……………………………………………..………21
Suit of Specific Performance by the Plaintiffs not maintainable…………………..……23
Illusory Cause of Action……………………………………………………………..………27
BARRED BY LAW……………………………………………………………………. .30
Limitation to seek specific performance – Article 54…………………………………….30
Deemed Knowledge…………………………………………………………………………..33
Plaintiff’s basis of right and Section 69 of the Partnership Act…………………..……36
RE: PART PERFORMANCE OF CONTRACT AND ANCILLARY RELIEF…………………. .42
V . JUDGMENTS CITED BY THE PLAINTIFF………………………………. 47
VI . CONCLUSION……………………………………………………………..… 51
I. INTRODUCTION
1. Rule returnable forthwith. Learned Advocates for the respective parties waive service of notice of Rule. With the consent of the parties matter is taken up for final hearing.
2. The present Revision Application has been filed to challenge the order dated 21.10.2022, passed by the 18th City Civil and Sessions Court in Civil Suit No. 220 of 2020, whereby the Ld. Trial Court rejected the application, below Exhibit 80, filed under the provisions of Order VII Rule 11 of the Code of Civil Procedure, 1908 (“CPC”).
3. For convenience, the parties are referred to by their status before the Ld. Trial Court.
4. The brief facts leading to the present Revision Application are as follows. The plaintiffs instituted Civil Suit No. 220 of 2020, contending that under a partnership deed dated 04.06.2003, the father of the plaintiffs and the father of defendants Nos. 1/1 to 1/6 had constituted a partnership firm under the name Tirupati Corporation. Upon the demise of both the original partners, and in terms of Clause 12 of the said partnership deed, the plaintiffs and defendants Nos. 1/1 to 1/6 became partners of the said firm. The plaintiffs filed the suit seeking a declaration that, pursuant to the agreement dated 19.12.1983, they hold an undivided share in the suit property and further prayed for a direction to be issued to the defendants Nos. 3 and 4 to execute a sale deed in favour of the Plaintiffs in respect of the said property.
5. The Plaintiffs also sought to challenge the sale deed, dated
18.11.2003, executed by defendant No. 4, in favour of defendant No. 5, as well as the sale deed, dated 14.11.2008, executed by defendants Nos. 1 and 2, in favour of defendant No. 6. A prayer for permanent injunction in respect of the suit property was also made. Subsequently, defendants Nos. 7 and 8 were joined as parties, as defendant No. 7 had pur
A suit for specific performance cannot be maintained by partners of a dissolved firm; and claims are barred under Section 69 of the Indian Partnership Act and the Limitation Act.
The court affirmed that suits regarding partnership rights can proceed even if the firm is unregistered and emphasized the requirement of proper evidence to establish claims of profit-sharing.
An unregistered partnership firm cannot file a suit for enforcement of a contract against a third party, as per Section 69 of the Indian Partnership Act.
Fresh suit for specific performance by registered firm after unregistered firm's suit dismissal is barred by Article 54 limitation if beyond three years from 1993 refusal; SLP leaving questions open ....
The main legal point established in the judgment is that the jurisdictional fact of registration of the partnership firm must be averred in the plaint to avoid the suit being rendered void under Sect....
Rejection of plaint under O VII R 11 CPC permits fresh suit via R 13; partnership firm acquires cause of action for specific performance if contract rights contributed as capital with firm funds; lim....
A suit for specific performance can be maintained by a partner even if not registered, provided the firm is engaged in business dealings.
Point of Law : Section 154 (1)(c) of Assam Land and Revenue Regulation cannot act as a bar as regards the maintainability of suit for which said cannot also be a substantial question of law involved ....
The main legal point established in the judgment is that a suit filed by an unregistered partnership firm under the Indian Partnership Act, 1932 is not maintainable and is inherently defective and no....
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