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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • provisions of Section 69 of the Indian Partnership Act
  • SECTION 69 PARTNERSHIP ACT
  • Order 41 Rule 27 of the Code of Civil Procedure.
  • Section 69 of the Indian Partnership Act, 1932,
  • section 69 of the Indian Partnership Act.
  • section 77 of the Indian Railways Act
  • SECTION 14 LIMITATION ACT
  • sub-section (2) of section 69:(2)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • provisions of Section 69 of the Indian Partnership Act
  • SECTION 69 PARTNERSHIP ACT
  • Order 41 Rule 27 of the Code of Civil Procedure.
  • Section 69 of the Indian Partnership Act, 1932,
  • section 69 of the Indian Partnership Act.
  • section 77 of the Indian Railways Act
  • SECTION 14 LIMITATION ACT
  • sub-section (2) of section 69:(2)
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The plaintiffs sued for recovery of Rs. 1,072 as damages for non-delivery of fourteen bags of green ginger. They claimed to be partners of a firm trading as Messrs Surajmal Naresh Kumar Jain, Patna. The pro forma defendant, Sekhar Chand Jain, dispatched the consignment from Manipur Railway Station (Bengal Assam Railway) on 17 February 1951 to Hajipur Railway Station (Oudh Tirhut Railway) and transferred the railway receipt to the plaintiffs. The consignment was expected to arrive around 27 February 1951. The plaintiffs' claim to the Oudh Tirhut Railway for Rs. 958 was not satisfied.

The plaintiffs first instituted Money Suit No. 38 of 1952 on 26 February 1952; that suit was dismissed on 20 March 1956 on the ground it was not maintainable under Section 69 of the Indian Partnership Act, 1932, because the alleged firm was not registered. The plaintiffs say they obtained a registration certificate (exhibit 9) on 5 May 1956 and filed the present suit on 19 May 1956.

The Munsif tried and dismissed the present suit by judgment dated 14 December 1959. The plaintiffs appealed to the District Court; the 3rd Additional Subordinate Judge of Muzaffarpur dismissed the appeal. The plaintiffs then appealed to the Court giving this opinion.

Legal Issues Presented

  1. Whether the suit is maintainable under sub-section (2) of Section 69 of the Indian Partnership Act, 1932 — specifically, whether the plaintiffs are shown in the Register of Firms as partners of the firm.
  2. Whether any notice required by section 77 of the Indian Railways Act was served on the defendants and whether the letter relied on constituted such notice.
  3. Whether Section 14 of the Limitation Act is applicable to the facts and whether the suit is barred by limitation.
  4. Whether the present suit is barred by res judicata in consequence of the earlier dismissed suit.

Arguments of the Parties

Appellant's (Plaintiffs') Arguments

  • The plaintiffs contended that the earlier suit was not a suit at all because it was instituted in contravention of Section 69 of the Partnership Act, and therefore res judicata did not bar the present suit.
  • They alleged that after dismissal of the first suit they "got themselves registered under the Indian Partnership Act" (the pleading was vague as to whether the firm was registered, the plaintiffs' names were entered, or both).
  • Counsel (Mr. Satyanand Kumar) argued that the fact that the plaintiffs' names were entered in the register was not challenged by the defendants.

Respondents' (Defendants') Arguments

  • In paragraph 6 of the written statement the defendants stated that the plaintiffs' firm was not registered.
  • The defendants challenged maintainability of the suit and denied the plaintiffs' allegations about registration.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court concentrated on the plaintiffs' failure to establish compliance with sub-section (2) of Section 69 of the Indian Partnership Act, 1932. The court identified the two distinct requirements of that provision: (1) the firm must be registered, and (2) the persons suing must be shown in the Register of Firms as partners of the firm.

The court observed that exhibit 9 established only that the firm was registered; it did not show that the three individual plaintiffs' names were entered in the register as partners. The Munsif had erred in treating exhibit 9 alone as sufficient proof of compliance with Section 69.

At the appellate stage the plaintiffs filed a certified copy of the register with a list of documents but did not apply to have that certified copy admitted in additional evidence under Order 41 Rule 27 of the Code of Civil Procedure. As a result, the document was not properly in evidence. Although the Subordinate Judge examined that document and noted discrepancies in addresses between persons named in the certified copy and the plaintiffs, the court held he was not obliged to consider that document because it had not been admitted as additional evidence.

The court further analyzed the pleading: the plaintiffs' statement about registration was vague and could only be read as an allegation that the firm was registered; it did not specifically allege that the plaintiffs' names were entered in the register. The defendants had denied registration in their written statement, and because the plaintiffs failed to produce admissible evidence that their names were entered in the register, the requirement of Section 69(2) remained unsatisfied.

Given this failure, the court found it unnecessary to deal with the other findings of the Subordinate Judge (regarding service of notice under section 77 of the Indian Railways Act, the character of exhibit 5, and the applicability of Section 14 of the Limitation Act), since the suit must fail on the registration ground alone.

Holding and Implications

APPEAL DISMISSED.

Implications:

  • The plaintiffs' appeal was dismissed for failure to establish that they were shown in the Register of Firms as partners of the firm, as required by sub-section (2) of Section 69 of the Indian Partnership Act, 1932.
  • The consequence for the parties is that the suit remains dismissed; the Court ordered that the parties shall bear their own costs in this Court.
  • The opinion does not purport to set or discuss any broader precedent beyond the application of Section 69(2) to the facts; no new legal principle was announced beyond the application of the statutory requirement to the pleadings and evidence in this case.

    Basant Lal Jain v. Union Of India

    1. This appeal by the plaintiffs arises out of a suit for recovery of a sum of Rs. 1,072/- as damages for non-delivery of a consignment of fourteen bags of green ginger.

    2. The plaintiffs claim to be partners of a firm which carries on business under the name and style of Messrs Surajmal Naresh Kumar Jain at New Market in the town of Patna. Their case is that the pro forma defendant, Sekhar Chand Jain, despatched the consignment in question from Manipur Railway Station in Assam (Bengal Assam Railway) on the 17th February, 1951, to Hajipur Railway Station on the Oudh Tirhut Railway. Sekhar Chand Jain transferred the railway receipt to the plaintiffs.

    3. The ordinary time taken for a consignment from Manipur to reach Hajipur is about ten days. The consignment should, therefore, have reached Hajipur on or about the 27th February, 1951. The plaintiffs made a claim from the Oudh Tirhut Railway for a sum of Rs. 958/- on account of the price of the green ginger; but their claim was not satisfied.

    4. The plaintiffs instituted Money Suit No. 38 of 1952 on the 26th February, 1952, for recovery of damages for non-delivery of the consignment in question. The suit was dismissed on the 20th March, 1956, on the ground that the suit was not maintainable under Section 69 of the Indian Partnership Act, 1932, inasmuch as the alleged firm of the plaintiffs was not a registered firm. The plaintiffs allege that they got the firm registered and obtained a registration certificate (exhibit 9) on the 5th May, 1956. On this basis, they filed the present suit on the 19th May, 1956.

    5. The Munsif, who tried the suit, dig-missed it by his judgment dated the 14th December, 1959. The plaintiffs took an appeal to the District Court, and it was heard by the 3rd Additional Subordinate Judge of Muzaffarpur, who dismissed the appeal. Hence, the plaintiffs have come up to this Court.

    6. The learned Subordinate Judge has held that no notice under section 77 of the Indian Railways Act has been served upon the defendants. In this connection, he has also held that the letter (exhibit 5) said to have been sent by the plaintiffs to railway authorities did not constitute a notice under the section. He has further held that section 14 of the Limitation Act is not applicable to the facts and circumstances of this case, and that the suit is barred by limitation. He has also held that the plaintiffs have not established that they are persons who “have been shown in the Register of Firms as partners in the firm” within the meaning of Sub-section (2) of section 69 of the Partnership Act, and as such, the suit must fail.

    7. Mr. Satyanand Kumar, who has appeared on behalf of the plaintiff-appellants, has challenged all the above findings of the learned Subordinate Judge. It is unnecessary for mo to consider all the points raised because ft. is clear that the plaintiffs must fail on the ground that they have not established that they are persons whose names have been entered in the register of firms as partners of the firm Surajmal Naresh Kumar Jain.

    8. Some of the allegations made by the plaintiffs in the plaint in the new suit are that the present suit is not barred by the principle of res judicata because, the previous suit having been filed in contravention of section 69 of the Partnership Act was no suit at all, and that, after the dismissal of the first suit, “they got themselves registered under the Indian Partnership Aft”. This allegation is rather vague. It is ‘difficult to understand from the statement that plaintiffs got the firm registered or that they got their own names registered as partners of the firm or both. In paragraph 6 of the written statement filed on behalf of the defendants, it was stated that the plaintiffs' firm is not registered. One of the issues which were raised in the suit was whether the suit was maintainable in its present form. The learned Munsif considered the objection of the defendants on this point in paragraph 7 of his judgment, he thought that the registration certificate (exhibit 9) was enough for compliance with the provisions of Section 69 of the Indian Partnership Act I may here quote sub-section (2) of section 69:

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

    9. It is manifest that two requirements are laid clown by this sub-section. The first requirement is that the firm should be registered. The second requirement is that the persons suing should be shown in the register of firms as partners in the firm. I may mention that the firm is not a plaintiff in this suit. It has been brought by three persons claiming to be partners of the firm. While exhibit 9 shows that the firm is a registered one, it does not show that the names of the three plaintiffs are entered in the register of firms as partners of the firm. The learned Munsif was, therefore, wrong in thinking that exhibit 9 was enough to show that the plaintiffs had complied with S. 69 of the Indian Partnership Ad. The point was, therefore, naturally raised before the learned Subordinate Judge in appeal. At the stage of arguments, the plaintiff-appellants filed a certified copy of the register, along with a list of documents. They did not file any application for taking that certified copy in additional evidence under Order 41 Rule 27 of the Code of Civil Procedure. There was, therefore, no question of the document being admitted in additional evidence. Still the learned Subordinate Judge looked into the document and found that the addresses of the persons named in that document were different from those of the plaintiffs. It seems to me, however, that he need not have looked into the document when it was not a piece of evidence in the case. He rightly held that it had not been established that the plaintiffs were shown in the register of firms to be members of the firm in question, and hence the suit was not maintainable in view of section 69 of the Indian Partnership Act. All that Mr. Satyanand Kumar has argued in this connection is that the fact that the names of the plaintiffs were entered in the register was not challenged by the defendants. As I have already shown, the plaintiffs made only a very vague statement in their plaint about the registration, to could be construed as being an allegation that the firm was registered, and the defendants denied that allegation. As the plaintiffs did not specifically state that their names were entered in the register, the defendants were not called upon to admit or deny such an allegation. Besides, there is nothing in the record, in the absence of the document filed by the plaintiffs at the time of arguments in the Court below, to show that the plaintiffs' names are entered in the register. That being so their suit has rightly been dismissed on this ground alone.

    10. No ground for interference has been made out. The appeal is, therefore, dismissed. The parties will bear their own costs of this Court.

    EI/LGC/D.V.C

    11. Appeal dismissed.

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    Comments

    Basant Lal Jain v. Union Of India
    (Apr 30, 1965)