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2023 Supreme(Mad) 1279

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R. VIJAYAKUMAR, J.
S. Mohammed Mirza Ismail – Appellant
Versus
Delhi Hall, a Partnership Firm Represented by its Managing Partner M. Shahul Hameed & Others – Respondents
C.R.P. (MD). No. 253 of 2023
Decided On : 08-03-2023

Advocates appeared:
For the Petitioner:D. Malaichamy, Advocate

Partnership Act provisions and Order 7 Rule 14(2) govern the necessity of parties in a suit for dissolution of partnership firm and rendition of true accounts.

Headnote:

Partnership Firm - Dissolution of Partnership - Order 7 Rule 14(2) - Partnership Act - Suit for dissolution of partnership firm and rendition of true accounts - Defendants 4 to 81 are unnecessary parties - Plaintiff's contention on the necessity of creditors and debtors as parties - Court's analysis on the necessity of parties for rendition of true accounts - Court's decision on the return order passed by the trial Court

Fact of the Case:

The plaintiff filed a suit for dissolution of partnership firm and rendition of true accounts. The trial Judge returned the plaint on the ground that defendants 4 to 81 are unnecessary parties and has returned the plaint for deleting the said defendants.

Finding of the Court:

The Court found that as per the plaint, the creditors and debtors of the firm are not necessary parties for the dissolution of the partnership firm. The Court also noted that the plaintiff did not possess any document to establish that defendants 4 to 81 are creditors and debtors of the firm.

Issues: The main issue was whether defendants 4 to 81 are necessary parties in the suit for dissolution of partnership firm and rendition of true accounts.

Ratio Decidendi: The Court held that as per Order 7 Rule 14(2) and the Partnership Act, only the firm and the partners of the firm are necessary parties for dissolution of the partnership firm. The Court also emphasized that the plaintiff did not possess any document to establish the necessity of creditors and debtors as parties.

Final Decision: The Civil Revision Petition was dismissed, and the return order passed by the trial Court was upheld.

JUDGMENT

(Prayer: The Civil Revision Petition has been filed under Article 227 of Constitution of India, to number the unnumbered Filing No.OS/1765/2022 CNR No.TNTH050022822022 on the file of the Sub Judge, Uthamapalayam and direct him to take the suit on file.)

1. The present revision petition has been filed by the plaintiff in an unnumbered suit for dissolution of partnership firm and rendition of true accounts.

2. The plaintiff who is one of the partners of the first defendant firm has filed the said suit as against the firm and two of its partners arraying them as defendants 1 to 3 in the suit. In the said suit, third parties to the partnership firm namely defendants 4 to 81 have been arrayed as defendants. The trial Judge had returned the plaint on the ground that defendants 4 to 81 are unnecessary parties and has returned the plaint for deleting the said defendants. Challenging the said order, the present civil revision petition has been filed.

3. The learned counsel for the petitioner/plaintiff had contended that defendants 4 to 78 are the creditors of the firm who have lending money to the partnership firm namely the first defendant. He had further contended that defendants 79 to 81 are the debtors who are purchased textile on credit basis and obtained loan from the firm. However, they are not in possession of any material or document to establish the borrowal of money by the firm or lending of money by the firm in favour of the defendants 79 to 81.

4. The learned counsel for the petitioner had further contended that the necessary averments in this regard have been made in the plaint. He had further contended that unless these defendants are arrayed as parties in the suit, he will not be in a position to establish that lending or borrowal of the first defendant firm which is very much essential for accounting of the firm. He had further stated in view of Order 7 Rule 14(2), the plaintiff had specifically stated in whose possession the documents are available. In view of the above said provision, the plaintiff need not produce his documents which are not in possession or his power. Therefore, the return order of the trial Court that the plaintiff has not produced any document to establish the borrowal or lending by partnership firm is not legally sustainable. Unless the creditors and debtors of the firm are made as parties, it is difficult to compel them to produce the documents which are under their custody. The learned counsel for the petitioner had further contended that the presence of the creditors and debtors is very much essential in settling the accounts of the first defendant firm. The prayer in the plaint has been sought as against all the defendants and hence, the trial Court was not correct in arriving at a conclusion that the prayer is restricted only to the defendants 1 to 3 alone. Unless the creditors and the debtors of the firm are made as parties, no effective decree could be passed. Even assuming without admitting that they are not necessary parties, at least they should be considered to be proper parties for effective and complete adjudication of all the matters in dispute. He had further pointed out that there is no bar in the Partnership Act to sue third parties like creditors and debtors. Hence, he prayed for setting aside the order passed by the trial Court and for a direction to number the plaint.

5. I have considered the submissions made on the side of the revision petitioner.

6. A perusal of the plaint indicates that the plaintiff is a partner in the first defendant firm. Defendants 2 and 3 are managing the said firm. The plaintiff has sought for a judgement and decree as against the defendants for dissolving of first defendant partnership firm and for rendition of true accounts. As far as the first part of the prayer namely dissolution of the first defendant firm is concerned, the creditors and debtors of the firm are not necessary parties and only the firm and the partners of the said firm are neces

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