V SUBRAMANIAM Vs. RAJESH RAGHUVENDRA RAO

JUDGEMENT

(1.) THIS Reference under Section 113 of the Civil Procedure Code, 1888 read with Order 27a Rule 1 thereof, has been made by the Bombay City Civil Court at Bombay seeking the opinion of this Court on the following Reference :-

(2.) THOUGH the Reference has been made in a particular Suit pending before the City Civil Court, since this is a vital question which affects a number of other litigants, we had invited Advocates who are concerned with the above issue to address us whereupon number of Advocates in other matters where the same issue has arisen or is likely to arise for consideration of the Court have appeared and addressed us. BACKGROUND

(3.) PRIOR to the year 1932, the law governing partnerships in India was contained in Chapter XI (Sections 239 to 266) of the Indian Contract Act of 1872. The said Chapter was repealed by the coming into force of the Indian Partnership Act, 1932 by which a separate enactment to deal with the subject of Partnership was brought on the statute book. Chapter VII (Sections 56 to 71) of the Indian partnership Act, 1932 contained the fasciculus of provisions regarding registration of partnership firms. Section 58 provides for the making of an application for registration containing the particulars stated in clauses (a) to (f) of sub-section (1) in the appropriate prescribed form. Such application has to be delivered to the Registrar in the concerned area and is required to be verified and signed by all the partners or by their agents specially authorised in this behalf. Such application is required to be made within a period of one year from the date of constitution of the firm. When the Registrar is satisfied that the provisions of Section 58 have been duly complied with, Section 59 provides that he shall record an entry of the statement in the Register of Firms. Section 59a gives a leeway for the Registration of firms beyond the prescribed period of one year on payment of certain prescribed penalty. Section 62 requires that where a partner in a registered firm alters his name or permanent address, an intimation of the alteration has to be given to the Registrar of Firms for the purpose of making entries in the Register of Firms. Similarly, Section 63 obligates every incoming or going partner or every partner upon dissolution of a firm to give full particulars regarding the changes in and dissolution of a firm. There is also provision under sub-section (2) of Section 63 for giving intimation regarding withdrawal of a minor who has been admitted for the purpose of partnership in a firm. Section 65 empowers a Court deciding any matter relating to a registered firm to direct that the Registrar shall make any amendment in the entry in the Register of firms relating to such firms which is consequential upon its decision and the Registrar shall amend the entry accordingly. There are detailed provisions as to inspection of the register and documents on record and penalties for contravention of the provisions.