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2015 Supreme(Ker) 827

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ASHOK BHUSHAN & A.M.SHAFFIQUE, JJ.
KURIACHAN CHACKO, MANAGING PARTNER AND ORS. – Appellant
Vs.
REGISTRAR OF FIRMS, OFFICE OF THE INSPECTOR GENERAL OF REGISTRATION – Respondents
W.A. No.395 of 2014
Decided On : 29.07.2015

Advocates Appeared:
For the Appellant : SRI.R.SURENDRAN
For the Respondents: SENIOR GOVERNMENT PLEADER SHRI P.I. DAVIS

Headnote:

Partnership Act 1932 - Section 63( 1) - Registration of Firm - Constitution of Firm - Held, To effectuate the right of partners or their agents for effecting changes S.63 has to be interpreted in the manner that constitution of registered firms shall include all necessary statements constituting the firm including composition of partners. The tenure of the firm, is already referred to in S.17(b) - Rule 4(2) cannot be said to be beyond the rule making power of the State - purpose and object of the Act. Section 71(2)(e), which empowers the State Government to frame rule regulating the filing of documents, all facets of regulation including a time frame is permissible

JUDGMENT :

Ashok Bhushan, J.

This Writ Appeal has been filed against the judgment dated 16.01.2014 in W.P(C) No.25818 of 2013 by which judgment the Writ Petition filed by the petitioners-appellants has been dismissed.

2. Brief facts giving rise to the Writ Petition are: Petitioners are partners of a registered firm, M/s.LIS constituted on 11.11.2002 by a deed of partnership which deed was registered with the Registrar of Firms on 26.11.2002. Duration of the Firm was mentioned as five years and statement under Section 58(1) of the Indian Partnership Act, (hereinafter referred to as "the Act") was submitted and registered by the Registrar of Firms. The deed of partnership contained a clause, i.e., clause 12 that duration of the Firm shall be five years and it can be further extended if decided by the partners unanimously. Petitioners claimed that a resolution dated 30.10.2006 was passed by which clause 12 of the partnership deed was amended in which resolution, the duration of the Firm was provided as minimum of thirty years and the Firm shall not be dissolved in the event of death of any of the partners and continue the business with the legal representatives of the deceased partner. Petitioners however did not send any notice to the Registrar about the above resolution and they sent notice to the Registrar only by letter dated 09.09.2013 praying that the change in the duration of the partnership be noted in the records. Copy of the resolution dated 30.10.2006 and an affidavit to that effect was also sent along with the letter. The Registrar by letter dated 23.09.2013 replied to the petitioners that since the tenure of the Firm registered on 26.11.2002 was five years which expired in 2007, the tenure cannot be extended. Petitioners filed the Writ Petition for the following reliefs:

"a) A writ or other order in the nature of mandamus directing the respondent to register Exhibit P3 resolution in the Register of Firms in respect of petitioners' firm M/s.LIS and incorporate the changes in such registers as required by law and

b) any other relief that the Honourable High Court of Kerala may deem fit to grant on the facts and circumstances of the case."

3. A statement was filed in the Writ Petition by the Registrar of Firms where it was mentioned that petitioners' Firm was registered on 26.11.2002 with duration of five years as mentioned at the time of Registration, tenure of the firm expired on 25.11.2007 and request for further extension for 30 years was submitted for the first time in the year 2013, after a lapse of six years. Partnership constituted for a fixed period of five years having come to an end after the expiry of five years, Exhibit P5 proceedings of the Registrar refusing to note the change was justified.

4. Learned Single Judge by judgment dated 16.01.2014 dismissed the Writ Petition. Learned Single Judge took the view that by the time petitioners submitted Ext.P4 bringing change of tenure of the firm to the respondent, the Firm stood automatically dissolved and lost the characteristic of registered firm. Learned Single Judge also rejected the contention of the learned counsel for the petitioners that the situation contemplated under Section 58(1)(f) regarding the tenure of the Firm is also taken care of by Section 63 which argument according to the learned Single Judge does not appear to be palatable. Reason given by the learned Single Judge for rejecting the argument was that the situation contemplated under Section 63 is in respect of affairs of the registered firms. Against the judgment of the learned Single Judge, this Writ Appeal has been filed.

5. Shri R.Surendran, learned counsel for the petitioners in support of the appeal contends that resolution dated 30.10.2006 was passed amending the tenure of 5 years of the Firm to a minimum of 30 years. There was no occasion for the Firm being dissolved under Section 42 of the Act. It is submitted that Rule 4(2) of the Kerala Partnership (Registration of Firms) Rules, 1959 whic
















































































































































































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