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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Insolvency Act, 1909, or the Provincial Insolvency Act, 1920,
  • provisions of Article 183 of the Limitation Act, 1908.
  • Article is Article 136 of the Limitation Act, 1963.
  • provisions of S. 69 of the partnership Act.
  • S. 69 of the Indian Partnership Act.
  • Article 136 of the Limitation Act.
  • Article 135 of the Limitation Act
  • SECTION 12 LIMITATION ACT
  • S. 69(3) of the Partnership Act
  • S. 69 of the Partnership Act.
  • S. 12 of the Limitation Act.
  • provisions of rule 10
  • 17, rule 10
  • 16, Rule 27
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Insolvency Act, 1909, or the Provincial Insolvency Act, 1920,
  • provisions of Article 183 of the Limitation Act, 1908.
  • Article is Article 136 of the Limitation Act, 1963.
  • provisions of S. 69 of the partnership Act.
  • S. 69 of the Indian Partnership Act.
  • Article 136 of the Limitation Act.
  • Article 135 of the Limitation Act
  • SECTION 12 LIMITATION ACT
  • S. 69(3) of the Partnership Act
  • S. 69 of the Partnership Act.
  • S. 12 of the Limitation Act.
  • provisions of rule 10
  • 17, rule 10
  • 16, Rule 27
Smart Summary

Factual and Procedural Background

This opinion concerns an application for execution of a decree. The decree was passed on 18 September 1962. The decree-holder applied for a certified copy of the decree on 15 September 1962 and obtained the certified copy on 15 March 1964. The application for execution was filed on 10 June 1975.

Two principal contentions were advanced in opposition to execution: (1) that the claim for execution was barred by lapse of time (limitation), and (2) that the decree sought to be executed was in favour of an unregistered firm and therefore execution could not be directed against such a firm.

Legal Issues Presented

  1. Whether the decree could be executed more than twelve years after it became enforceable — i.e., whether the time spent in obtaining a certified copy should be excluded when computing the period of limitation for execution under Article 136 of the Limitation Act.
  2. Whether execution could be permitted in favour of (and by) a firm which was not shown to be registered under the Partnership Act — i.e., whether S. 69 of the Partnership Act bars execution proceedings by or on behalf of an unregistered firm.

Arguments of the Parties

Decree-holder's Arguments

  • The time taken to obtain the certified copy of the decree should be excluded when computing limitation for execution because, under Chapter 17, Rule 10 (or the High Court's procedural rules cited), a decree could not be executed until a certified copy was obtained; thus the decree did not become enforceable until the certified copy was obtained.
  • Reliance was placed on certain decisions and procedural observations (including an observation of the Supreme Court in Sm. Saila Bala Dassi v. Nirmala Sundari Dassi and a Division Bench decision in Satyendra Nath Bose v. Bibhuti Bhusan Bhar) to support the contention that execution could not be initiated before a certified copy was issued.
  • On the point of registration, counsel for the decree-holder argued that S. 69 bars suits to enforce contractual rights by unregistered firms but does not prohibit execution of a decree (i.e., the bar is against institution of suits rather than against execution proceedings).

Respondent's / Opposing Arguments

  • The execution application was time-barred under Article 136 of the Limitation Act because the period of limitation (twelve years) had run; time spent obtaining a certified copy is not excluded from the limitation period.
  • The firm seeking execution appeared to be unregistered; under S. 69 of the Partnership Act an unregistered firm cannot sue to enforce rights arising from contract or conferred by the Act, and a decree obtained by such a firm is vulnerable — the plaint itself could be a nullity and proceedings without jurisdiction.
  • Document purported to be certified copy of registration did not show that the applicant firm (Sunderlal & Sons) itself was registered as a firm; hence the execution application should be disallowed on that ground as well.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lala Baijnath Prosad v. Narsingdas Guzrati, AIR 1958 Cal. Interpreting the phrase “present right to enforce the decree” (Article 183 of Limitation Act, 1908) — date of decree where decree immediately executable is the starting point of limitation (not date of obtaining certified copy). The court held the ratio applicable to the present Article 136 context and relied on it to conclude that where a decree is immediately executable the limitation period begins on the date of passing the decree, not on the date of obtaining the certified copy.
Biswapati Dey v. Kensington Stores, AIR 1972 Cal. 172 (Single Judge) Authority supporting the view that time for obtaining certified copy is not excluded for limitation under execution provisions. The court cited this decision as further support that the time taken to obtain the certified copy should not be excluded from the limitation period for execution.
Sm. Saila Bala Dassi v. Nirmala Sundari Dassi, AIR 1958 SC 394 Observation that under procedural rules (Chapter 16, Rule 27) no certified copy would be issued until the decree was drawn up, and without a certified copy no execution proceeding could be taken (procedural point). The court treated this Supreme Court observation as being in a different context (procedure for execution) and held it did not support delaying the moment at which a decree becomes enforceable for limitation purposes.
Satyendra Nath Bose v. Bibhuti Bhusan Bhar, AIR 1963 Cal. 104 Division Bench observation that certified copy is necessary for proper execution of a decree. The court concluded that this decision does not support the proposition that a decree does not become executable for limitation purposes until a certified copy is obtained under Article 136.
K.K.A Ponnuchami Goundar v. Mathusami Goundar, AIR 1942 Mad. 252 Support for the proposition that a plaint filed by an unregistered firm would not be a plaint at all; proceedings under it would be without jurisdiction. The court cited this case as supporting the conclusion that a decree obtained by an unregistered firm can be a nullity and therefore not executable.
Shriram Sardarmal Didwani v. Gourishankar Joharmal, AIR 1961 Bom. 136 Similar support that actions by unregistered firms are vulnerable; authority cited on effect of non-registration. Relied upon as one of several authorities indicating that a decree obtained by an unregistered firm may be void for want of jurisdiction.
Firm Laduram Sagarmal v. Jamuna Prosad Chaudhuri, A.I.R. 1939 Pat. 239 Supportive authority on effects of non-registration of a firm concerning suits and proceedings. Used to bolster the court's conclusion that the decree is vulnerable when procured by an unregistered firm.
Dwijendra Nath Singh v. Gobinda Chandra, AIR 1953 Cal. 497 Another authority cited in the same line regarding the effect of non-registration. The court relied on this decision as additional support for treating a decree obtained by an unregistered firm as a nullity.
Surajmall Nargoremull v. Triton Insurance Co. Ltd., 52 I.A. 126 Authority referenced to show that objections based on non-registration can be raised at later stages. The court relied on the Judicial Committee's observations to conclude that the point may be taken at this stage and supports setting aside the decree if the firm was unregistered.
Gopinath Motilal v. Ramdas, AIR 1936 Cal. 133 Authority regarding the effect of non-registration and when the objection can be raised. Named in support of the view that a decree obtained by an unregistered firm may be null and the point can be taken in execution proceedings.
Jamal Usman Kachi v. Firm Umar Haji Karim Shop, AIR 1943 Nag. 175 Nagpur High Court held that sub-s. (3) of S.69 had no application to execution of a decree and read the words relating to "other proceeding" narrowly. The court noted this authority but observed that the Supreme Court later did not accept this restrictive reading; the opinion of the Nagpur High Court was therefore not followed.
Jagdish Chandra Gupta v. Kajaria Traders (India) Ltd., AIR 1964 SC 1882 Supreme Court rejecting the narrow reading of sub-s. (3) of S.69 — holding the words "other proceeding" should receive full meaning and are not restricted by preceding words like "claim of set off." The court relied on this Supreme Court decision to hold that execution proceedings can be covered by S.69 and that the prohibition extends beyond mere institution of suits.
Kuldip Thakur v. Sheomangal Prasad Thakur, AIR 1957 Patna 4 Patna High Court view that the bar applied to institution of suit but not to the court's consideration; cited to argue the bar did not preclude execution. The court respectfully disagreed with this view, holding that an incompetent plaint gives no entitlement to jurisdiction and therefore a decree based on such a plaint may be a nullity.
Jalal Mahammad v. Kakka Mohammad, AIR 1972 Mad. 86 Madras Division Bench decision cited for the same proposition that the bar is only against institution, not consideration. The court declined to follow this view for the reasons stated, treating an incompetent plaint as creating a jurisdictional error leading to nullity.
Anisminic Ltd. v. Foreign Compensation Commission, 1969 (2) A.C. 147 Authority (Lord Reid) for the proposition that "jurisdiction" means the entitlement of the tribunal to enter upon the inquiry — used to explain when an error results in want of jurisdiction. The court applied the quoted principle to hold that entertaining a suit in contravention of the mandatory provision in S.69 would amount to an error of jurisdiction and render the decree a nullity.

Court's Reasoning and Analysis

The court addressed the two contentions in turn and applied statutory provisions and precedent as follows.

1. Limitation:

  • The court examined Article 136 of the Limitation Act (12 years for execution of any decree other than a mandatory injunction) and, by reference, Article 135 (three years for enforcement of a decree granting a mandatory injunction).
  • The decree-holder's contention that the time taken in obtaining the certified copy should be excluded was considered. The court analysed the expression “right to enforce the decree” drawing on the Division Bench decision in Lala Baijnath Prosad v. Narsingdas Guzrati which treated the starting point of limitation, where a decree is immediately executable, as the date of passing of the decree and not the date of obtaining a certified copy.
  • The court held that the ratio of that Division Bench decision applied to Article 136: a decree that is immediately executable becomes enforceable on the date it is passed. The time taken to obtain the certified copy is not to be excluded in computing limitation for execution. The court observed that the legislature in the Limitation Act had specifically provided for certain excluded periods in other contexts (referring to S.12) and had not chosen to exclude time for obtaining certified copies for execution; excluding it by judicial interpretation would run counter to legislative intention.
  • The court treated earlier Supreme Court observations (Sm. Saila Bala Dassi) and Division Bench observations (Satyendra Nath Bose) concerning procedural requirements for issuing certified copies as being directed to execution procedure, not to the question of when a decree becomes enforceable for limitation purposes, and therefore did not accept them as supporting the decree-holder's limitation argument. The court also cited the single-judge decision in Biswapati Dey as in line with its conclusion.
  • On this basis the court accepted the first contention in opposition — i.e., the execution claim was barred by lapse of time.

2. Registration of the Firm and Effect of S.69 Partnership Act:

  • The court examined S.69 (Effect of non-registration) of the Partnership Act which prohibits suits to enforce rights arising from contract by or on behalf of an unregistered firm (unless registration and partners are shown in the Register of Firms).
  • From the petition, decree and record it did not appear that the applicant firm was registered. A document produced did not establish that Sunderlal & Sons itself was registered; at best it showed the firm’s name as an address for another firm or person, not that the applicant firm was registered as a firm under the Partnership Act. The court therefore proceeded on the basis that the applicant was an unregistered firm.
  • The court considered whether a decree obtained by an unregistered firm is a nullity. It concluded, interpreting the language of S.69, that a plaint filed by an unregistered firm would not be a plaint at all and that proceedings under it would be without jurisdiction. The court cited multiple authorities (including decisions from Madras, Bombay, Patna, Calcutta and the Judicial Committee) in support of this view and concluded that the point of non-registration could be taken at the execution stage.
  • The decree-holder's contention that S.69 barred only the institution of suits but did not preclude execution proceedings was considered. The court examined decisions which took that view (Patna and Madras) but disagreed. Relying on the principle explained by Lord Reid in Anisminic — that jurisdiction is the entitlement of the tribunal to enter upon the inquiry — the court reasoned that such entitlement must arise from a competent plaint. If the plaint was incompetent because of the statutory bar, there was no plaint and hence no suit; a decree based on such a patent error would be an error of jurisdiction and therefore a nullity.
  • Further, the court relied on the Supreme Court's interpretation in Jagdish Chandra Gupta v. Kajaria Traders to reject a narrow reading of S.69; the words “other proceeding” in sub-s. (3) must receive their full meaning and are not trimmed down by preceding words such as “claim of set off.” Hence execution proceedings that enforce contractual rights would fall within the prohibition of S.69.
  • On this basis the court concluded that the decree obtained by an unregistered firm was a nullity and could not be executed.

Holding and Implications

Holding:

Application for execution rejected.

Implications:

  • Direct effect on the parties: The execution application filed on 10 June 1975 was dismissed. The court concluded both that the execution claim was time-barred under Article 136 (the time taken to obtain a certified copy is not excluded) and that the decree could not be executed because it had been obtained by an unregistered firm and was therefore void for want of jurisdiction (S.69 Partnership Act).
  • Costs: Each party was directed to pay and bear their own costs. Any interim order was vacated. The order was certified for counsel.
  • Precedential effect: The opinion applies and relies upon existing statute and case law to reach its conclusions. The opinion itself does not state that it establishes a new legal principle beyond the application of the cited authorities; its holdings rest on applying previously decided authorities and statutory interpretation to the facts before the court.
Application for execution rejected.

    Sunderlal & Sons v. Yagendra Nath Singh & Anr.

    1. This is an application for execution. The decree was passed on 18th September, 1962. The decree-bolder applied for certified copy on the 15th September, 1962. He obtained the said certified copy on the 15th March, 1964. The application for execution was made on the 10th June, 1975. The question, is, whether the said decree can be executed now. In this application two contentions were urged. It was submitted, firstly, that the claim for execution had become barred by lapse of time. It was, secondly, submitted that the execution being by an unregistered firm, such execution was not permissible. So far as the first question of limitation is concerned the relevant Article is Article 136 of the Limitation Act, 1963. The said Article provides as follows:

    “136. For the execution of any decree (other than a decree granting a mandatory injunction) or order of any civil court. Twelve Years Where the decree or order becomes enforceable or where the decree or any subsequent order directs any payment of money or the delivery of any property to be made at a certain date or at recurring periods, when default in making the payment or delivery in respect of which execution is sought, takes place; Provided that an application for the enforcement or execution of a decree granting a perpetual injunction shall not be subject to any period of limitation.”

    2. In this connection reference may be also made to Article 135 of the Limitation Act which is the following effect:

    “For the enforcement of a decree granting a mandatory injunction. Three Years The date of the decree or where a date is fixed for performance, such date.”

    3. Contention on behalf of the decree-holder is that the time taken for obtaining certified copy of the decree should be excluded. It was contended that in view of the provisions of rule 10 of Chapter 17 of the Rules of the Original Side of this Court a decree could not be put into execution without obtaining a certified copy of the decree. Therefore, it was submitted that the decree did not become enforceable until after the certified copy had been obtained. In the premises, it was urged that the time taken for obtaining the certified copy was the time to make the decree enforceable and until that time the decree not being enforceable time would not run. The expression ‘right to enforce the decree’ came up for consideration by a Division Bench of this court in the case of Lala Baijnath Prosad v. Narsingdas Guzrati AIR 1958 Cal. ??? in the context of the provisions of Article 183 of the Limitation Act, 1908. The Division Bench observed that Article 183 spoke of ‘a present right to enforce the decree’. It did not speak of a right under the decree but of the right to enforce it. In other words, it did not speak of the rights to the benefit provided for under the decree but of the right to put the decree into service for the purpose of extracting those benefits. The Division Bench came to the conclusion that in a case where the nature of the decree was such that it was immediately executable the starting point of limitation would be the date of passing of the decree and not when the certified copy of the decree as is required by Chapter 17, rule 10 of the High Court was obtained. Though the language used in the present Article is different, I am of the opinion, that the ratio of the said decision would be applicable in the instant case. The legislative intent on this aspect is manifest by the fact that the legislature has chosen not to exclude the period of time taken for obtaining the certified copy for the purpose of execution under S. 12 of the Limitation Act. In the face of such specific exclusion for certain other specified purposes in the different categories of exclusion, to exclude the time for obtaining certified copy for execution proceeding would be, in my opinion, going contrary to the expressed legislative intention. Section 12 of the Limitation Act does not permit exclusion of this period. On the contrary, suggests that this period should not be excluded. The language of Article 136 of the Limitation Act also does not warrant exclusion of the period. This question, further, is concluded by the judgment of the learned single Judge of this Court in the case of Biswapati Dey v. Kensington Stores AIR 1972 Cal. 172. Counsel for the decree-holder, however, drew my attention to the observations of the Supreme Court in the case of Sm. Saila Bala Dassi v. Nirmala Sundari Dassi AIR 1958 SC 394. There the Supreme Court observed referring to Chapter 16, Rule 27 of the Original Side Rules that the effect of the provision was that until the decree was drawn up as mentioned thereunder no certified copy would be issued to the party and without a certified copy no execution proceeding could be taken. Relying on the aforesaid observation counsel submitted that as no execution proceeding can be taken the decree would not become executable until after certified copy was obtained. In my opinion, this contention is not valid. The aforesaid observation of the Supreme Court was made entirely in a different context, namely, the procedure for execution. It will become executable the moment the decree is passed and as such I am unable to accept the aforesaid observations of the Supreme Court in support of the contention urged on behalf of the decree-holder. Reliance similarly was placed on a Bench Decision of this Court in the case of Satyendra Nath Bose v. Bibhuti Bhusan Bhar AIR 1963 Cal. 104 where the Division Bench observed that certified copy was necessary for proper execution of the decree. That decision, in my opinion, cannot be availed of by the decree-holder in aid of his contention that until certified copy was obtained, the decree did not become executable in terms of Article 136 of the Limitation Act. In the aforesaid view of the matter, the first contention in opposition to this application, therefore, must be accepted.

    4. The second point in opposition to this application for execution was that the firm which was seeking execution being not a registered firm execution could not be directed. That the application is by a firm is apparent from the petition. From the application and the decree and the cause papers it does not appear that the firm is a registered one. A point therefore was taken that the firm was not registered. In answer to this contention a document purported to be a certified copy of registration of the firm was produced. The said document does not indicate that this firm of Sunderlal & Sons was itself registered as such. It is true that in respect of the firm Santi Swarup Gupta the address of Sunderlal & Sons at 7/1A, Clive Row, Calcutta, is indicated as the address but that does not indicate that this applicant firm is registered under the Partnership Act. In the aforesaid view of the matter I must proceed on the basis that the firm is unregistered. If that is so, the question is whether such an unregistered firm is entitled to maintain this application for execution. On this context counsel on behalf of the respondent drew my attention to the provisions of S. 69 of the Partnership Act. The said provision provides as follows:—

    “69. Effect of non-registration.

    (1) No Suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.

    (2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

    (3) The provisions of sub-ss. (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract, but shall not effect—

    (a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or any right or power to realise the property of a dissolved firm, or

    (b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909, or the Provincial Insolvency Act, 1920, to realise the property of an insolvent partner.”

    5. In this case the decree has been passed. If the decree is a nullity then of course this point can be taken. But the question is whether a decree passed without this point having been taken is nullity or not. In view of the language of the section, in my opinion, a plaint filed by an un-registered firm would not be a plaint at all. If that be so, all proceedings thereunder will be proceedings without jurisdiction. Support for this proposition can be had from the observations of the Division Bench of Madras High Court in the case of K.K.A Ponnuchami Goundar v. Mathusami Goundar AIR 1942 Mad. 252. Similar view was taken in the case of Shriram Sardarmal Didwani v. Gourishankar Joharmal*, AIR 1961 Bom. 136, Firm Laduram Sagarmal v. Jamuna Prosad Chaudhuri A.I.R 1939 Pat. 239 and Dwijendra Nath Singh v. Gobinda Chandra, AIR 1953 Cal. 497. This contention, in my opinion, can also be taken at this stage. Reliance in this connection may be placed on the observations of the Judicial Committee in the case of Surajmall Nargoremull v. Triton Insurance Co. Ltd., 52 I.A 126 and in the case of Gopinath Motilal v. Ramdas AIR 1936 Cal. 133. In the aforesaid view of the matter I am of the opinion that the firm not being registered the decree was a nullity and as such cannot be executed.

    6. Counsel for the decree-holder, however, contended that the bar was against suit to enforce a right arising from a contract or conferred by the Partnership Act. Therefore, according to counsel, the execution application was not one which was prohibited by S. 69 of the Partnership Act. In aid of this submission reliance was placed on the observations of the Nagpur High Court in the case of Jamal Usman Kachi v. Firm Umar Haji Karim Shop AIR 1943 Nag. 175. It was held that the words “other proceeding to enforce a right arising from a contract” should be taken as sui genesis of a claim to set off. The Nagpur High Court held that sub-s. (3) of S. 69 of the Act had no application to the execution of a decree whether consent decree or decree after contest. This conclusion of Nagpur High Court was not accepted by the Supreme Court in the case of Jagdish Chandra Gupta v. Kajaria Traders (India) Ltd., AIR 1964 SC 1882. There the Supreme Court observed that interpretation ejusdem generis need not always be made when words showing particular classes were followed by general words. Before the general words could be so interpreted there must a genus constituted or a category disclosed with reference to which the general words could and were intended to be restricted. The expression ‘claim of set off’ in S. 69(3) of the Partnership Act did not disclose a category or a genus. The words other proceeding which followed must, therefore, receive their full meaning, untrammeled by the words ‘a claim of set off’. The latter words neither intended nor could be construed to cut down the generality of the words other proceeding.

    7. I am therefore, of the opinion that where execution is in respect of a claim arising out of a suit based on a contract, the prohibition indicated by S. 69 would apply. Furthermore, the fact that in sub-clause (b) of sub-s. (4) of S. 69 of the Act proceedings in execution or other proceedings incidental to the execution of certain specified suit as indicated in that sub-clause have been excluded and no other proceeding of execution has been excluded, in my opinion, is clearly indicative of the fact that the proceedings in execution which are to enforce rights arising from contracts would be covered by S. 69 of the Indian Partnership Act. In that view of the matter I am unable to accept the contention that execution proceedings are not covered by the prohibition of S. 69 of the Indian Partnership Act. Counsel for the decree-holder contended, further, that prohibition was against the institution of the suit and the prohibition was not against the consideration of the suit by the court. In aid of this submission he relied on the observations of the Patna High Court in the case of Kuldip Thakur v. Sheomangal Prasad Thakur, AIR 1957 Patna 4 and also on the Bench decision of the Madras High Court in the case of Jalal Mahammad v. Kakka Mohammad, AIR 1972 Mad. 86. In the view I have taken of the nature of prohibition, with great respect, I am unable to accept this conclusion of the aforesaid two decisions. Jurisdiction as observed by Lord Reid in the case of Anisminic Ltd. v. Foreign Compensation Commission, 1969 (2) Appeal Cases 147, at page 171 of the report is the entitlement of the tribunal to enter upon the inquiry in question. That entitlement in my opinion can only arise from a competent plaint instituted by a plaintiff. If the plaint was incompetent, there was no plaint. There was no suit. Ex facie and without any dispute there was no valid suit. A decree based on such a patent and indisputable error would be an error of jurisdiction and decree passed on such error would be nullity. If, however, the error depends upon adjudication of disputes, either of fact or law different considerations would apply. After all as the Supreme Court has observed that the question whether there was an error within the jurisdiction or an error of jurisdiction depends upon the nature of the error. In view of the express provision and public policy indicated in S. 69 of the Partnership Act, in my opinion, entertaining a suit in derogation of that mandatory provision would defeat the purpose of the statute and such an error would amount to an error of jurisdiction and a decree passed on such an error would be a nullity. In aforesaid view of the matter, in my opinion, on this ground also this decree cannot be executed. In the premises, this application must fail. However, in view of the thoroughness with which this application was argued I direct that the parties should pay and bear their own costs. Interim ordea, if any, is vacated. Certified for counsel.

    Application for execution rejected.

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    Comments

    Sunderlal & Sons v. Yagendra Nath Singh & Anr.
    (Feb 4, 1976)