1984 Supreme(Raj) 525
RAJASTHAN HIGH COURT
S.K.Mal Lodha, S.S.Byas, JJ.
M/s Chandra Bhan Banshi Lal Ram Ratan Daga - Appellant
Versus
Municipal Council - Respondent
D.B. Civil Special Appeal No. 74 of 1974.
Decided On : 3-12-1984
A suit for the enforcement of a right arising out of a contract cannot be instituted on behalf of an unregistered firm against a third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
Headnote:
PARTNERSHIP ACT - SECTION 69(2) - REGISTRATION OF FIRM - SUIT BY UNREGISTERED FIRM - BAR - MANDATORY PROVISION.
Fact of the Case:
A partnership firm, M/s Chandra Bhan Banshilal Ram Ratan Daga, Bikaner, instituted a suit for recovery of a sum deposited with the Municipal Council, Bikaner, for a specific purpose. The suit was contested by the Municipal Council on various grounds, including the maintainability of the suit by an unregistered firm.
Finding of the Court:
The court held that the suit was barred under Section 69(2) of the Indian Partnership Act, 1932, as the firm was not registered and the names of all the partners were not shown in the Register of Firms.
Issues: Whether the suit was maintainable by an unregistered firm.
Ratio Decidendi: Section 69(2) of the Indian Partnership Act, 1932, is mandatory and prohibits the institution of a suit on behalf of an unregistered firm against a third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
Final Decision: The court dismissed the appeal, holding that the suit was rightly held to be barred under Section 69(2) of the Indian Partnership Act, 1932.
(3) Whether the plaintiff is entitled to file this suit ?
(8) Whether the plaintiff's firm is registered and, therefore, the suit is maintainable ?
The learned Civil Judge dealt with issues Nos. 3, 4 and 8 together. In connection with issues No. 8 he came to the conclusion that in the absence of the proofs, the suit is not maintainable and could not have been filed by the plaintiff. While doing so, the learned Civil Judge examined the statements of R.P.W. 2. Tolarem and P.W. 4 Shri Gopal and also considered the certificate of registration (Ex. 2) dated November 5, 1964 and Entry of Register under s. 67 of the Act in which five reasons are mentioned as partners of the plaintiff-firm. He was of the opinion that the names of the three daughters Kusum, Kumud and Kulakumari do not appear in the aforesaid entry, the copy of which was issued by the Registrar of firms, Rajasthan, Jaipur. As the names of three daughters were not mentioned in the Entry of Register, the learned Civil Judge opined that the suit was barred under s. 69 (2) of the Act. On appeal, the learned single Judge considered the statements of P.W. 2 Tolaram and P.W. 4 Shri Gopal and the documents referred by the learned Civil Judge and summed up his conclusion in the following words:-
"As already pointed out the evidence produced on behalf of the plaintiff goes to show that the names of some of the partners of the plaintiff firm had not been shown in the Register of firms as partners and as such the suit was therefore, clearly barred under s. 69 of the Partnership Act."
The learned single Judge dismissed the appeal.