Hindustan Infrastructure Construction Corpn. Ltd. v. R.S. Woods International Ltd.
C.R.P. No. 19 of 2018 and C.M. Nos. 4276-4277 of 2018
Decided on: 13-12-2018
Hon’ble Judge: Vinod Goel, J.
Facts
An application was filed by the Petitioners under Order VII, rule 11, CPC for rejection of plaint on the ground that the suit was barred under section 69(2) of the Indian Partnership Act, 1932. Application was rejected as per section 69(2) of the Act which states that no suit to enforce a right arising from a contract 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 as partners in the firm. Recovery suit of Rs. 24,41,967 was filed by the respondents on account of dishonour of cheques, an unregistered firm.
Issue
Enforcement of the liability of the petitioners created under section 30 and 37 of the Negotiable Instruments Act, 1881 as the cause of action for the plaint is based on the dishonour of cheques.
Held
Court decided that since there was no contract between the parties, the bar under section 69(2) of the Partnership Act would not apply. Accordingly the petition dismissed. Section 69 of the Act of 1932 clearly states that, 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. No suit to enforce a right arising from a contract 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 as partners in the firm.
