GIRDHARI LAL Vs. NEW BHARAT FINANCE CO

JUDGEMENT

(1.) THIS is an appeal under Section 39 of the Arbitration Act filed by fhe debtor, against whom an application under Section 20 of the Arbitration Act was filed by the first respondent in the Court of Sub Judge, Jammu. The other respondents are the sureties. A number of objections were raised to the maintainability of the application, one of these being that the respondent firm, namely New Bharat Finance Company, Kanak Mandi, Jammu, was not duly registered under the provisions of the Partnership Act. The controversy between the parties, amongst others, gave rise to the following preliminary issue : "Whether the plaintiff firm is not registered in accordance with law ? O. P. D."

(2.) THE parties joined the issues and led evidence in support of their respective cases. THE trial Court decided all the issues against the appellant and held that the firm was duly registered. It accordingly made a reference of the disputes mentioned in the application to the Arbitrator. It is this order which has been assailed in this appeal.

(3.) THE appeal, in my opinion, can be disposed of on the short ground that the respondent firm is not duly registered. It is now well settled that an application under Section 20 of the Arbitration Act cannot be filed on behalf of a firm unless the firm is duly registered. Section 57 of the Partnership Act empowers the Government to appoint Registrars of Firms for the purpose of the Act, and further empowers it to define the areas in which they shall exercise jurisdiction. This section speaks of appointing Registrars of Firms only but does not speak of appointing Assistant Registrars of Firms. THEre is also no other provision in the Act, under which a Registrar of Firms may include an Assistant Registrar of Firms. Obviously, therefore, an Assistant Registrar is an authority not known to the Act. Section 59 says that when a Registrar is satisfied that the provisions of Section 58 have been duly complied with, he shall record an entry of the statement in a Register called the Register of Firms. This Register in terms of R. 5 of the Rules framed under the Partnership Act shall be in Form A. THE registration of a firm cannot take effect by merely sending a statement required to be made under Section 58 of the Partnership Act to the Registrar, but will take effect only when the necessary entry is made in the Register of Firms, after the Registrar is satisfied that provisions of Section 58 have been fully complied with. How these entries are to be made in the Register of Firms has been provided in Rule 5 which reads as under: