Allahbad High Court
DEOKINANDAN
Kedar Nath - Appellant
Versus
Firm Rekh Chand Dasu Ram - Respondent
Decided On : 11/26/1982
EXECUTION OF DECREE - MINORITY - CONSTRUCTIVE RES JUDICATA - JUDICIAL NOTICE - NOTORIOUS FACT - DISSOLUTION OF FIRM - AUTHORITY OF PARTNER TO EXECUTE DECREE - SECTION 47, INDIAN PARTNERSHIP ACT, 1932 - SUMMARY
Fact of the Case:
The appellant, Kedar Nath, challenged the execution of a decree against him on two grounds: (1) he was a minor when the suit was instituted and decreed, and (2) the decree was in favor of a dissolved firm, and one of the partners alone executed it without obtaining leave from the court.
Finding of the Court:
The court held that the appellant's objection based on minority was barred by the rule of constructive res judicata since he did not raise it during the suit proceedings. The court also found that the appellant was an adult at the time of the suit. Regarding the second objection, the court held that under Section 47 of the Indian Partnership Act, 1932, a partner of a dissolved firm has the authority to execute a decree in favor of the firm.
Issues: 1. Whether the appellant's objection based on minority was barred by the rule of constructive res judicata. 2. Whether a partner of a dissolved firm has the authority to execute a decree in favor of the firm.
Ratio Decidendi: 1. The appellant did not raise the objection of minority during the suit proceedings, and the suit proceeded on the basis that he was an adult. Therefore, the objection was barred by the rule of constructive res judicata. 2. Section 47 of the Indian Partnership Act, 1932, provides that the authority of each partner to bind the firm continues after the dissolution of the firm for the purpose of winding up the affairs of the firm and completing unfinished transactions.
Final Decision: The appeal was dismissed.
2. The second objection raised was that the decree was in favour of the firm Rekh Chand Dasu Ram. It was put into execution after the dissolution of the firm by one of its partners Navrang Lal. It was urged that under Rule 15 of Order 21 of the Code of Civil Procedure, the decree being a decree jointly in favour of the partners of the dissolved firm, one of them alone could not execute it without applying and obtaining the leave of the Executing Court under the provisions of that Rule. It is doubtful whether the provisions of R.15 of O.21 apply to the case of execution of a decree by a firm where the suit has been brought in the firm name and decreed as such. O.30. R.1 (2) provides that where persons sue or are sued as partners in the name of their firm under sub-rule (1), it shall, in the case of any pleading or other document required by or under this Code to be signed, verified or certified by the plaintiff or the defendant suffice if such pleading or other document is signed verified or certified by any one of such persons. Navrang Lal was indisputably one of the partners who carried an business as a partner in the firm named Rekh Chand Dasu Ram in which the suit was brought. An execution application is certainly a document, which is required to be signed under the Code by the decree-holder, and the decree-holder being the firm, it could be signed on its behalf by Navrang Lal.
3. The question raised, however was that the firm having been dissolved, the authority of Navrang Lal to give a valid discharge on behalf of the firm ceased with the dissolution of the firm and he could, therefore, no longer, maintain the execution application in his name alone. All the partners of the dissolved firm ought to have been joined in making the execution application so as to given the judgment-debtor an effective and complete
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