PURUSHOTTAM Vs. SHIVRAJ FINE ART LITHO WORKS

JUDGEMENT

(1.) In this appeal by special leave the plaintiffs are the appellants. Their suit against original defendant Nos. 1 to 9 was decreed for the sum of Rs.8,92,815.14 by the Third Joint Civil Judge (Senior Division, Nagpur in Civil Suit No.52 of 1980. On appeal by original defendants 1 to 3, the High Court in First Appeal No.35 of 1988 by its impugned judgment and order of April 10, 1992 allowed the appeal and dismissed the suit holding that in view of the provisions of Section 69(2) of the Indian Patnership Act (hereinafter referred to as the Act, the suit was not maintainable, the plaintiff being an unregistered firm.

(2.) The facts of the case are not in dispute and they will be briefly noticed. Plaintiff No.1, Pursushottam, carried on business as whole-sale paper merchant in the name and style of "Dinesh Paper Mart" as the sole proprietor of the concern. During this period he supplied goods to the defendant firm namely - Shivraj Fine Arts Litho Works, a firm registered under the Partnership Act. Defendants 2 to 9 were the partners of the said firm. In the year 1974, Special Civil Suit No.9 of 1974 was filed for dissolution of the defendant partnership firm and for rendering of accounts. During the pendency of the suit a receiver was appointed initially to take possession of the properties of the firm and to run the business of the firm. Later joint receivers were appointed, and it is not in dispute that at the relevant time defendant No.2 and defendant No.12 were in management of the aforesaid registered firm-respondent No.1 herein as joint receivers.

(3.) The aforesaid Purushottam had business dealings with the respondent No.1 firm. Goods were supplied and payments made from time to time. It is not in dispute that the amounts due and payable to the plaintiff No.1, Purushottam were fully paid up as on March 20, 1974, that is, before the date of appointment of Receiver. Even after appointment of the Receiver, successive Receivers purchased goods from Plaintiff No.1, Purushottam, herein for the business of respondent No.1-firm. A khata was maintained by plaintiff No.1 Purushottam in which payments made were duly entered, and at the end of the year the amount outstanding as on December 31, was carried forward to the next year. The defendant firm acknowledged their liability to pay the amount entered in the khata by making an endorsement in the khata. As at the end of the financial year 1979 a sum of Rs.6,22,713.06 was the balance due from the defendant firm to plaintiff Purushottam. The plaintiff was also entitled to interest at the agreed rate of 18% per annum on the balance outstanding for more than seven days.