LAXMI OIL MILLS (FIRM) Vs. LILADHAR CHHAGANLAL (FIRM)

JUDGEMENT

(1.) THIS is a defendants' appeal directed against an order of remand passed by the first appellate Court which had set aside the order passed by the trial Court dismissing the plaintiff's suit on the ground that the Registration of the plaintiff firm under Indian Partnership Act was invalid in law.

(2.) THE ground on which the trial Court's view was based was that although the Indian Partnership Act had been extended to Part B States under the Part B States Extension of taws Act and had consequently been applied to the Madhya Bharat region yet no rules had been framed by the Government of Madhya Bharat under section 71 of the Act prescribing either the fees which ought to accompany documents to be sent to the Registrar of Firm for the firm's registration or the form of statement submitted under section 58 and of the form of its verification till 28 -10 -1955. The plaintiff firm however was registered on 19 -6 -1954 when the prescribed fees and form of statement under section 58 did not exist. Its registration consequently was invalid in law and the present suit filed on the strength of such registration on 8 -8 -1958 was incompetent since the plaintiff firm having been invalidly registered should be taken to be unregistered. The present suit was therefore bad by reason of section 69 of the Partnership Act. The suit was consequently dismissed.

(3.) MR . Pande appearing for the defendants -appellants contended that the plaintiff firm ought to have been registered subsequent to the coming into force of the rules. Its prior registration, without a by registration fee and form to be submitted under section 58 having been prescribed, is a nullity.