SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1989 Supreme(Ker) 504

High Court of Kerala
S. Padmanabhan, J.
Ms Neldon Company - Appellant
Versus
P V Radhakrishnan & Anr - Respondent
S.A. No. 862 of 1984
Decided On : 01-12-1989

Statutory provisions and rules of procedure are intended to advance the cause of justice and not for its denial on technical grounds.

Headnote:

S.69(2) - Indian Partnership Act - [S.69(2)] - The court discussed the provisions of S.69(2) of the Indian Partnership Act, which provides that a suit is not maintainable unless the firm is registered and the person who signed the plaint on behalf of the firm is shown in the register of firms as a partner. The court emphasized that the statute must not be interpreted in a way that prevents the court from molding its decision in a manner consistent with the justice of the case. It also highlighted that the plaintiff need not expressly mention the firm's registration or the partners' names unless denied by the defendant. The court allowed the admission of additional documents, emphasizing that statutory provisions and rules of procedure are intended to advance the cause of justice and not for its denial on technical grounds.

Fact of the Case:

The suit was filed by M/s. Neldon Company for the realization of the balance amount due under a pronote. The trial court dismissed the suit on the ground of maintainability for want of proof of conditions of S.69(2) of the Indian Partnership Act. The appellate court confirmed the decision solely on the ground of maintainability. The second appeal was filed by the plaintiff challenging the maintainability of the suit.

Finding of the Court:

The court found that the suit was wrongly dismissed on the ground of maintainability under S.69(2) of the Indian Partnership Act. It emphasized that the purpose of the provision should not be ignored and that the suit cannot be thrown out on the ground of maintainability when the defendant does not raise a plea regarding the partner's registration in the firm. The court allowed the admission of additional evidence and decreed the suit in favor of the plaintiff.

Issues: The main issue was the maintainability of the suit under S.69(2) of the Indian Partnership Act. The court also addressed the dismissal of the suit on technical grounds and the denial of justice to the plaintiff.

Ratio Decidendi: The court held that the suit cannot be dismissed on the ground of maintainability when the defendant does not raise a plea regarding the partner's registration in the firm. It emphasized that statutory provisions and rules of procedure are intended to advance the cause of justice and not for its denial on technical grounds.

Final Decision: The second appeal was allowed, and the plaintiff was given a decree for the realization of the balance amount with interest and costs from the respondents and their assets.

JUDGMENT

S. Padmanabhan, J.

1. Plaintiff is "M/s. Neldon Company", a partnership firm. The suit was filed by its Managing Partner, Mrs. Kunjumol Mathai, for realisation of the balance amount due under Ext. A1 pronote. One of the contentions was a vague plea of discharge. That is unsupported by any evidence and concurrently found against. The plea was not further pursued. Suit was dismissed and the decision was confirmed in appeal solely on the ground of maintainability for want of proof of conditions of S.69(2) of the Indian Partnership Act. That is the only moot point in this second appeal filed by the plaintiff.

2. In cases like this where there is a genuine claim which is not disputed, courts are expected to be more circumspect in dismissing the suit on such a plea especially when the contention itself is vague and evidently without bona fides. The purpose of the provision also should not be ignored. No plea as such was raised specifically-under S.69(2) of the Indian Partnership Act. Registration of the partnership was denied. But the firm is proved to be registered by production and proof of Ext. A2, which is the original acknowledgment of the registration of firm. The only other contention is that Kunjumol Mathai, who signed the plaint as Managing Partner, is not the Managing Partner. There was no contention that she was not shown in the register of firms as a partner of managing partner. As DW 1, first defendant said that the above contentions were without any enquiry or knowledge and he cannot deny that the firm is registered and Kunjumol is the managing partner. Thereafter, he admitted frankly that the firm is registered and he knows the registered office also. He also said that now he knows that the person who signed the plaint is the managing partner. Thus the requirements of S.69 are practically admitted and proved.

3. First part of S.69 (2) of the Indian Partnership Act providing that the suit is not maintainable unless the firm is registered was, therefore, at any rate not available to the Trial Court or the appellate court for dismissing the suit. Then the only question is whether the suit is not maintainable for the reason that the person who signed the plaint on behalf of the plaintiff firm is not shown in the register of firms as partner, There is no such contention. Then I fail to understand how the suit could have been dismissed without any surviving contention regarding maintainability under S.69 (2).

4. Law does not require that a plaint must expressly mention that the firm is a registered one or that the partner suing, as such, is recorded in the register of firms as a partner in the firm. Therefore, when the defendant does not raise a plea that the partner suing is not recorded in the register of firms as a partner of the firm, the plaintiff can assume that the plea was not raised and he need not adduce evidence that he is recorded as a partner in the register of firms. In such a case, the suit cannot be thrown out on the ground of maintainability (see page 1158 Indian Partnership Act, fifth edition by J. P. Singhal). The statute must not be interpreted in such a way as to prevent the court from moulding its decision in such a manner as to be consistent with the justice of the case. In the plaint, in a suit instituted in the name of the firm or by all partners of the firm, the plaintiff need not disclose who are the partners unless a demand for disclosure comes under Order XXX R.2 C. P. C. Only when some of the partners institute the suit on behalf of the firm and an objection is taken by the defendants that they do not by themselves alone constitute the firm and the suit is not maintainable, they need disclose the names and show that they are shown in the register of firms as partners and hence the suit is maintainable. Under Order VIII R.2 C. P. G, the defendant is bound to plead all matters which show that the suit is not maintainable. Proof of registration and disclosure in the register may be necessary,




Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top