(1.) THIS second appeal is by the plaintiff against the dismissal of his suit by the Courts below.
(2.) THE plaintiff-appellant M/s Bachomal Sadoromal was a registered partnership firm carrying on its business of money lending at Raipur having two partners, Bachomal s/o Sadoromal and Smt. Rekha Devi w/o Ramesh Kumar. On 28-10-1971, the plaintiff-firm lent a sum of Rs. 5,000 to the defendant-respondent on his executing a Hundi in favour of the firm. As the money was not paid even many days after maturity, the plaintiff filed a suit for the recovery of the amount together with interest.
(3.) THE Courts below found that Bachomal at the time of entering into the contract of partnership was a citizen of India. He acquired the citizenship of India on 30-7-1971. Bachomal son of Sadoromal came into India on or about 28-8-1970. The partnership was formed on 19-11-1970 and they applied for registration of the firm on 21-5-1971. The firm was registered as partnership firm on 3-6-1971. Both the Courts held that since on 3-6-1971 when the contract of partnership was entered into, the plaintiff was not a citizen of India, he could not validly form a partnership which could carry on baseness in India. The partnership being illegal according to the Courts below, they could not enforce the recovery of the sum advanced by a suit and, therefore, dismissed the claim of the plaintiff on the preliminary ground.