2007 Supreme(HP) 320
KULDIP SINGH, J.
Ram Singh
Versus
Daulat Ram and Anr.
R. S. A. No. 140 of 1996
Decided on : 3-8-2007.
B. K. Malhotra, for Appellant; Rajesh Mandhotra, for Respondents.
Headnote:Indian Partnership Act, Section 69 and Sub-Section 3 of Section 69 - Rendetion of Accounts Sub-Judge passed the preliminary degree for rendition of accounts in favour of the plaintiff - Respondents filed appeal before the District Judge who allowed the same under Section 69 of the Partnership Act holding that the suit could not have decreed for want of Registration of !,e Firm - The counsel for the plaintiff submitted that the District Judge "as not appreciated sub-section (3) of Section 69 of the Act - Held, that in the facts and circumstances of this case• The judgment and degree dated 1.11.1995 by the District Judge in Civil Appeal no. 28 of 1992 are set aside - The case is remanded to District Judge, Mandi with the directions to the District Judge to decide the appeal afresh - Appeal allowed. (Paras 5, 9 & 10)
ORDER :- The plaintiff is in appeal against judgment, decree dated 1-11-1995, passed by the District Judge, Mandi, Kullu and Lahual-Spiti Districts at Mandi, in Civil Appeal No. 28 of 1992, accepting the appeal and setting aside preliminary decree passed by the Sub-Judge, Court No. 2, Mandi in Civil Suit No. 86 of 1990. The parties are referred in the same manner, as in the trial Court.
2. The brief facts of the case are that plaintiff filed a suit for rendition of accounts against defendants alleging that the parties entered into an agreement to install a saw-mill jointly for which Rs. 5,000/- were contributed by each partner and the saw-mill was installed at Bali Chowk. There was an oral agreement between the parties that each of the partner shall share the loss and profit in equal shares. The defendant No.1 borrowed Rs. 1000/- from Chakurtha Co-operative Agriculture Service Society on behalf of plaintiff and invested this amount in the business of the saw-mill. According to the plaintiff his capital in the business of the partnership became Rs. 6000/-. The defendants without the consent and permission of the plaintiff sold the saw-mill to one Sham Singh for a consideration of Rs. 30,000/-, but they did not render the account. On these grounds, the plaintiff filed the suit for rendition of account and prayed for passing of preliminary decree.
3. Defendants contested the suit by filing written statement and took preliminary objection of maintainability of the suit, limitation, locus standi of the plaintiff to file the suit. On merits, they have alleged that 18-20 years ago, the parties had orally agreed to install a saw-mill and the same was installed. The saw-mill suffered losses after two years of its installation. The plaintiff and defendant No. 2 withdrew from the partnership and share of the plaintiff and defendant No. 2, profit and loss was paid back to them. The defendant No.1 is the sole proprietor of the business for the last 16-17 years. It has been denied that loan was taken from Chakurtha Co-operative Agriculture Service Society by the plaintiff and was invested in the saw-mill. The saw-mill was sold to Sham Singh, who is in exclusive possession thereof. The defendants prayed for dismissal of the suit.
4. The learned Sub-Judge had passed preliminary decree for rendition of accounts in favour of the plaintiff and against the defendants on 30-1-1992. The defendant No.1 filed appeal, which was allowed by the District Judge on 1-11-1995. The plaintiff has filed this appeal against judgment, decree dated 1-11-1995. The name of respondent No. 2 was deleted vide order dated 3-12-1996 of this Court.
5. The appeal has been admitted without framing any substantial question of law on 3-12-1996, though the substantial questions of law which are at page 6 of the Paper Book. The District Judge has allowed the appeal and held that in view of Section 69 of the Indian Partnership Act (for short, the Act), the suit could not have been decreed for want of registration of firm. The learned counsel for the parties have agreed and addressed arguments on the following substantial question of law :-
Whether suit for rendition of accounts of the dissolved firm by one of the partners against the other partners is maintainable in view of the provisions of sub-section (3) of Section 69 of the Indian Partnership Act.
6. I have heard the learned counsel for the parties and gone through the record.
7. The learned counsel for the plaintiff has submitted that District Judge has not appreciated properly sub-section (3) of Section 69 of the Act. He has submitted that in the written statement, no specific plea of bar of Section 69 of the Act, has been taken and no issue to this effect has been framed. The issue No.1 is of maintainability and issue No.3 is of locus standi of the plaintiff to file the suit. The perusal of the judgment of the trial Court would show that even on these issues, the defendants did not address any arguments regarding ba