IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
R.P.Sarathy (died) – Appellant
Versus
Narasu's Coffee Company by P. Sivanantham – Respondent
CRP(PD) No.568 of 2018 and CMP No.5321 of 2021
Decided on : 27-04-2021
Benami Transactions (Prohibition) Act, 1988 - Section 4(9)(b)(2) - Partnership Act – Suit Partition and permanent injunction - Dissolution of Company - Share - Suit was filed under name and style of “Narasu's Coffee Company' represented by against revisions petitioners - Plaintiff was registered under provisions of Partnership Act - Partners of said firm - Trust agreed to retire would continue as a partner after inducting his wife one of partners - Amount was also execution of Memorandum of Understanding, first respondent Firm has been completely under control his wife, who are only partners of said Firm - Properties are Firm's properties - Disagreed with Memorandum of Understanding, first respondent filed a suit – Held, Partner's right in firm/company will accrue only in event of dissolution of Firm or he will get dividend for his share in Company in event of dissolution of Company - Suit was originally not filed in a proper manner - Now, by virtue of amendment, plaintiff is not going to introduce any new plea, but by ignorance, suit was filed and same has to be corrected legally. Further, without amendment, right of parties cannot be adjudicated in a proper manner and allowing this amendment will no way prejudice right of any of parties of suit - Court does not find any irregularity in allowing this relief and with amendment of pleading and prayer, Court can render complete justice to the parties - Claim of plaintiff would not be affected in view of Section 4(9)(b)(2) of amended Benami Transactions (Prohibition) Act, 1988 is set aside and same can be decided by trial Court by framing appropriate issue and decide the same in accordance with law after allowing parties to let in evidence - Court does not find any error in fair and decreetal order passed in I.A. in O.S. on file of II Additional District Court - Civil Revision Petition is partly allowed.
ORDER :
Challenging the fair and decreetal order dated 16.06.2016 made in I.A.No.141 of 2014, filed to amend the plaint in O.S.No.50 of 2012, on the file of II Additional District Court, Salem, the defendant has filed the above Civil Revision Petition and the plaintiff is the respondent in I.A.No.141 of 2014.
2. The suit was filed by the plaintiff for partition and for permanent injunction. Suit was filed under the name and style of “Narasu's Coffee Company' represented by P.Sivanantham against the revisions petitioners herein. Originally, the plaintiff was registered under the provisions of Partnership Act. The partners of the said firm were (1) R.P.Sarathy, (2) B.Latha (3) B.Jayashree (4) P.Sivanantham and (5) Mahalakshmiammal Trust. Subsequently, the said Firm was reconstituted by inducting the wife of P.Sivanantham. Under these circumstances, all the partners have entered into a Memorandum of Understanding on 10.08.2006, whereby, the partners viz., R.P.Sarathy, B.Latha, B.Jayashree and Mahalakshmiammal Trust agreed to retire and P.Sivanantham would continue as a partner after inducting his wife Mrs.Lalitha as one of the partners.
3. As per Memorandum of Understanding, Mr.P.Sivanantham is liable to pay a sum of Rs.26.5 crores towards the final settlement to the retirement of all the revision petitioners as well as Mahalakshmiammal Trust. The said amount was also paid by Mr.P.Sivanantham. After the execution of Memorandum of Understanding, the first respondent Firm has been completely under the control of Mr.P.Sivanantham and his wife, who are the only partners of the said Firm. The said Firm viz., Narasu's Company was converted into Sri Narasu's Coffee Company Limited with effect from 01.04.2009. In this regard, Exs.P.26 (True copy of the order of Memorandum and Articles of Association) and P.27 (Xerox copy of incorporation) were marked on behalf of the first respondent herein.
4. Disagreeing with the Memorandum of Understanding dated 10.08.2006, one of the partners viz,R.P.Sarathy filed a suit in O.S.No.106 of 2009 for partition to divide the six items of suit schedule properties. These properties are Firm's properties. Since R.P.Sarathy disagreed with the Memorandum of Understanding, the first respondent filed a suit in O.S.No.1019 of 2009 to declare the sale deeds dated 23.08.2006 executed in terms of Memorandum of Understanding in favour of the revision petitioners herein as null and void.
5. The revision petitioners filed a petition in I.A.No.865 of 2009 to reject the plaint in O.S.No.106 of 2009 and the same was dismissed by the trial Court on 18.08.2011. Thereafter, Civil Revision Petition in CRP No.2379 of 2012 was filed by the respondents herein. The said Civil Revision Petition was allowed and the plaint in O.S.No.106 of 2009 was rejected. Against the said order, a Special Leave Petition No.118 of 2015 was filed and the same was dismissed on 02.02.2015.
6. Under these circumstances, the revision petitioners filed a petition in I.A.No.249 of 2012 to reject the plaint in O.S.No.50 of 2012. It is the case of the respondent that at the time of preparing the counter to the said application, the respondent herein came to know the fact that the suit was filed against improper and non-existent person. The suit was filed by Partnership Firm viz., Narasu's Coffee Company, Whereas, the said Firm was converted into Limited Company under the name and style of “Sri Narasu's Coffee Company Limited” (hereinafter called as “the Company” )with effect from 01.06.2009. Therefore, the plaintiff in the suit filed an Amendment Petition to amend the cause title. Further, the suit was filed for partition to divide 27 items of the property mentioned in the Schedule. The suit was filed for partition by the Firm due to the reason that R.P.Sarathy refused to accept the Memorandum of Understanding, entered into in the year 2006.
7. The plaint in O.S.No.106 of 2009 was rejected by the Hon'ble High Court in C.R.P No.2379 of 2012 and subsequently it was
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