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2026 Supreme(Online)(Kar) 6471

THE HIGH COURT OF KARNATAKA
S.R.Krishna Kumar, J
Sri. G. Sathyanarayana – Appellant
Versus
M/S Tara & Murthy, Chandana B – Respondent
WRIT PETITION NO.18902 OF 2025 (GM-CPC) | WRIT PETITION NO.18905 OF 2025 (GM-CPC) | COMM.O.S. NO.225/2024



Advocates:
For the Appellants/Petitioners: Sri. A. Anil Kumar Shetty
For the Respondents: Sri. M. Viswanatha Reddy, Sri. Pradeep Darak, Sri. S.V. Prakash

A newly admitted partner to a firm cannot be held liable for debts incurred prior to their admission; determination of liability requires full trial.

Headnote:(A) Constitution of India - Article 227 - Civil Procedure - Addition/Deletion of Parties - Suit for recovery of Rs.2,12,32,776/- filed by plaintiff against partnership firm and its partners - Trial Court allowed applications for deletion of defendants, stating newly inducted partners were not liable for pre-existing liabilities - High Court reversed the order, ruling that liability should be determined during trial; defendants, while newly inducted, may still have pertinent defenses warranting their inclusion in the proceedings - Established that the principle of joint and several liability applies at the initial stage and defendants should be allowed to present their defenses for consideration at trial. (Paras 7-13)

(B) Civil Procedure Code - Order 1 Rule 10(2) - Deletion of parties - A party can only be deleted after establishing they are not a necessary or proper party to the case - The merits of the case cannot be adjudicated at this stage. (Paras 9, 12)

Table of Content
1. details of the parties involved in the writ petitions (Para 1 , 2 , 3)
2. claims regarding the investment and contractual obligations (Para 4 , 5)
3. defense arguments regarding liability and non-joinder of parties (Para 6 , 7 , 8)
4. implications of reconstitution deeds on partnership liability (Para 9 , 10)
5. court's analysis on the merits of deletion applications and trial necessity (Para 11 , 12 , 13)

ORAL ORDER

Both these petitions by the plaintiff in Com.O.S.No.225/2024 on the file of the Commercial Court.

W.P.No.18902/2025 is directed against the impugned order dated 30.09.2024 passed on I.A.No.5 by the learned LXXXVII Additional City Civil & Sessions Judge, Commercial Court at Bangalore in Comm.O.S.No.225/2024.

W.P.No.18905/2025 is directed against the impugned order dated 16.04.2025 passed on I.A.Nos.9 to 11 by the learned LXXXVII Additional City Civil & Sessions Judge, Commercial Court at Bangalore in Comm.O.S.No.225/2024.

2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3. A perusal of the material on record will indicate that the petitioner-plaintiff instituted the aforesaid suit against seven defendants for recovery of a sum of Rs.2,12,32,776/- together with interest jointly and severally as against all the defendants. In the said suit, in addition to filing their written statement, the defendant No.5 filed an application-I.A.No.5 seeking deletion from the array of parties to the suit. So also, defendant Nos.4, 6 and 7 filed applications-I.A.Nos.9 to 11 seeking their deletion from the array of parties. By the impugned order, the Trial Court allowed I.A.Nos.5, 9, 10 and 11 thereby deleting defendant Nos.5, 4, 6 and 7, respectively from the array of parties to the suit. Aggrieved by the impugned orders passed by the Trial Court deleting defendant Nos.4 to 7 from the array of parties, the petitioner – plaintiff is before this Court by way of the present petitions.

4. Learned counsel for the petitioner would reiterate the various contentions urged in the memorandum of petition and submits that the various contentions urged by defendant Nos.4 to 7 in their written statement as well as in their Affidavits filed in support of the applications are seriously disputed and denied by the petitioner in his statement of objections and since the petitioner has filed the suit seeking joint and several liability against all defendants including defendant Nos.4 to 7, the said issue as regards the alleged liability of defendant Nos.4 to 7 would necessarily have to be decided only after a full-fledged trial, the question of deleting defendant Nos.4 to 7 from the array of parties without permitting the parties to adduce oral and documentary evidence and without going to trial, is contrary to the principles governing addition / deletion of parties and as such, the impugned orders deserve to be set aside.

5. Per contra, learned counsel for respondent No.5 – defendant No.5 in W.P.No.18902/2025 would invite my attention to the material on record in order to point out that defendant No.5 had resigned from the partnership firm on 22.01.2024 and as such, the plaintiff having filed the suit on 08.02.2024 after resignation of defendant No.5 from the status of partner was not maintainable as against defendant No.5 and as such, defendant No.5 deserved to be deleted from the array of parties and the impugned order passed by the Trial Court deleting defendant No.5 does not warrant interference by this Court in the present petition.

6. So also, learned counsel for respondent Nos.4, 6 and 7 – defendant Nos.4, 6 and 7 in W.P.No.18905/2025 submits that they were admitted into the respondent No.1 – defendant No.1 / partnership firm after the subject transaction in question and as such, defendant Nos.4, 6 and 7 are not liable towards the plaintiff, in any sum whatsoever and there is no cause of action for the suit against them and they are liable to be deleted from the array o

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