{"id":103133,"date":"2009-10-06T00:00:00","date_gmt":"2009-10-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/achhru-ram-vs-narinder-kumar-jain-on-6-october-2009"},"modified":"2018-11-10T12:36:59","modified_gmt":"2018-11-10T07:06:59","slug":"achhru-ram-vs-narinder-kumar-jain-on-6-october-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/achhru-ram-vs-narinder-kumar-jain-on-6-october-2009","title":{"rendered":"Achhru Ram vs Narinder Kumar Jain on 6 October, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Achhru Ram vs Narinder Kumar Jain on 6 October, 2009<\/div>\n
RSA No.117 of 2009(O&M)                                                    1\n\nIN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH\n\n                               R.S.A. No. 117 of 2009 (O&M)\n                               Date of Decision:October 06, 2009\n\n\n\nAchhru Ram                                        ...........Appellant\n\n\n                              Versus\n\n\n\nNarinder Kumar Jain                                ..........Respondent\n\n\nCoram:       Hon'ble Mrs. Justice Sabina\n\n\nPresent: Mr.A.S.Syan, Advocate for the appellant.\n\n\n                              **\n\nSabina, J.\n<\/pre>\n
                 Plaintiff filed a suit for   recovery of Rs.2,09,515\/- i.e.<\/p>\n
Rs.1,94,500\/- principal amount and Rs.15,015\/- as interest @ 12% per<\/p>\n
annum from the date of payment till 10.8.2003 along with pendente lite and<\/p>\n
future interest @ 12% per annum till full and final payment on the<\/p>\n
allegations that the defendant approached the plaintiff to deal with the sale<\/p>\n
and purchase business of property jointly and plaintiff agreed for the same<\/p>\n
and both of them started the joint business. The suit of the plaintiff was<\/p>\n
dismissed by the Additional Civil Judge (Senior Division) Patiala vide<\/p>\n
judgment and decree dated 22.2.2007. Aggrieved by the same, the plaintiff<\/p>\n
filed an appeal which was dismissed by the Additional District Judge<\/p>\n
(Adhoc) Patiala vide judgment and decree dated 5.5.2008.           Hence, the<\/p>\n
present appeal by the plaintiff-Achhru Ram.\n<\/p>\n
               The facts of the case, as noticed by the Additional District
\n RSA No.117 of 2009(O&M)                                                      2<\/span><\/p>\n
Judge in paras 2 to 5 of its judgment, read as under:-<\/p>\n
          ” 2. Briefly stated the facts of the case as stated in the plaint are<\/p>\n
          that he and the defendant both agreed for dealing with the sale<\/p>\n
          purchase business of the property in different cities and States<\/p>\n
          through out India jointly, having its offices at Patiala and<\/p>\n
          Kurukshetra namely “Jain and Co” and “Jain Property Advisor”.<\/p>\n
          It is further averred that it was settled between them that the<\/p>\n
          plaintiff will come in the share at a consideration as per his<\/p>\n
          discretion and financially status. The defendant used to purchase<\/p>\n
          the properties and used to receive money from the plaintiff of his<\/p>\n
          share and himself used to sell the same and the plaintiff used to<\/p>\n
          deal with the business while sitting in the office being an old man<\/p>\n
          and used to pay the amount of his share only. They started their<\/p>\n
          business and dealt with so many properties, but in some cases, the<\/p>\n
          defendant failed to perform his part of the contract as they<\/p>\n
          purchased a plot for Rs.2.25 lacs situated at Kurukshetra and to<\/p>\n
          pay Rs.50,000\/- as earnest money, the defendant received<\/p>\n
          Rs.12,500\/- from him as 1\/4th share i.e. Rs.25 paise share vide<\/p>\n
          receipt dated 9.1.2003. It is further averred in the plaint that<\/p>\n
          another land measuring 2 acres 7 kanals and 19 marlas situated at<\/p>\n
          Kurukshetra was purchased by them for a consideration of Rs.16<\/p>\n
          lacs per acre and to pay the earnest money, the defendant received<\/p>\n
          Rs.1,02,000\/- from him as 1\/17th share vide receipt dated<\/p>\n
          3.11.2002. Some other properties were also purchased by them<\/p>\n
          jointly. One property measuring 5-1\/4 acres at Kurukshetra was<\/p>\n
          purchased for a consideration of Rs.24 lacs and to pay the earnest
\n RSA No.117 of 2009(O&M)                                                      3<\/span><\/p>\n
         money, the defendant received Rs.50,000\/- from him as 5 paise<\/p>\n
         share on 29.12.2002. Another property i.e. a built house situated<\/p>\n
         at Kurukshetra was also purchased for a consideration of Rs.3 lacs<\/p>\n
         and to pay the earnest money, the defendant again received<\/p>\n
         Rs.30,000\/- from him vide a receipt dated 28.1.2003.             The<\/p>\n
         defendant agreed to execute all the agreements regarding these<\/p>\n
         properties in favour of the plaintiff, but to no effect. The plaintiff<\/p>\n
         as such received a sum of Rs.1,94,500\/- from him. Neither he<\/p>\n
         executed any agreement nor he refunded the amount. Due to this<\/p>\n
         failure of the contract, the plaintiff is not interested to carry on<\/p>\n
         this business now.      He requested the defendant to return the<\/p>\n
         amount along with interest, but to no effect. Hence, the suit.<\/p>\n<\/blockquote>\n
         3.    In the written statement, the defendants took the preliminary<\/p>\n
         objections that the court has got no jurisdiction to entertain and<\/p>\n
         decide the suit; that the plaintiff has no cause of action; that the<\/p>\n
         plaintiff has not come to the court with clean hands and the suit of<\/p>\n
         the plaintiff is false and frivolous.\n<\/p><\/blockquote>\n
         4. On merits, the defendant denied the joint business as alleged<\/p>\n
         by the plaintiff because the plaintiff is a stranger to him. He also<\/p>\n
         denied if there was any settlement between them. It is alleged that<\/p>\n
         the defendant used to purchase and sell the properties, but it is<\/p>\n
         denied that he has received any amount from the plaintiff and<\/p>\n
         receipt, if any, is forged one. Since there was no contract between<\/p>\n
         them, so the question of carrying on the same business in future,<\/p>\n
         does not arise. Remaining averments are also denied and a prayer<\/p>\n
         for dismissal of the suit has been prayed.\n<\/p><\/blockquote>\n
 RSA No.117 of 2009(O&M)                                                      4<\/span><\/p>\n
\n<\/blockquote>\n
          5.   Replication has also been filed by the plaintiff in which he<\/p>\n
          controverted the pleas taken in the written statement and<\/p>\n
          reiterated those made in the plaint.<\/p><\/blockquote>\n
               On the pleadings of the parties, the following issues were<\/p>\n
framed by the trial Court:-\n<\/p>\n
          “1. Whether the plaintiff is entitled to recovery of Rs.1,94,500\/-<\/p>\n
          as principal amount?OPP<\/p>\n<\/blockquote>\n
          2. Whether the plaintiff is also entitled to interest, if so at what<\/p>\n
          rate?OPP<\/p>\n<\/blockquote>\n
          3.    Whether this Court has no jurisdiction to try the present<\/p>\n
          suit?OPD<\/p>\n<\/blockquote>\n
          4.   Whether the plaintiff has no cause of action to file the present<\/p>\n
          suit?OPD<\/p>\n<\/blockquote>\n
          5.    Relief.”\n<\/p><\/blockquote>\n
               After hearing the learned counsel for the appellant, I am of<\/p>\n
the opinion that the present appeal deserves to be dismissed.<\/p><\/blockquote>\n
               Plaintiff had filed a suit for recovery of the amount in<\/p>\n
question on the allegations that the defendant had approached the plaintiff<\/p>\n
to deal with the sale and purchase business of property jointly and they had<\/p>\n
started a joint business. Both the plaintiff and defendant started their<\/p>\n
business at Pataila and Kurukshetra.      However, the defendant failed to<\/p>\n
perform his part of the contract. Due to this reason, plaintiff asked the<\/p>\n
defendant to return the amount of Rs.1,94,500\/- along with interest. Learned<\/p>\n
trial Court, after appreciating the evidence on record, held as under:-<\/p>\n
          “If both the firms were unregistered firms, no suit for recovery<\/p>\n
          was competent by one partner against the other as framed by the
\n RSA No.117 of 2009(O&M)                                                      5<\/span><\/p>\n
         plaintiff.   Moreover, the receipts nowhere state that the sums<\/p>\n
         mentioned therein were paid by the plaintiff to the defendant or<\/p>\n
         that the defendant was liable to return those amounts to the<\/p>\n
         plaintiff with interest in case the transaction does not succeed<\/p>\n
         rather the remedy to the plaintiff lay under the provisions of the<\/p>\n
         Indian Partnership Act but the plaintiff has failed to pursue the<\/p>\n
         remedy available to him and as such I have no option but to hold<\/p>\n
         that the plaintiff is not entitled to recover the suit amount from the<\/p>\n
         defendant and also any amount as interest and the plaintiff has got<\/p>\n
         no cause of action to file the instant suit and as such findings on<\/p>\n
         issue nos. 1 and 2 are answered against the plaintiff while those<\/p>\n
         on issue no.4 in favour of the defendant.”\n<\/p><\/blockquote>\n
         Section 69 of the Indian Partnership Act, 1932 reads as under:-<\/p>\n<\/blockquote>\n
         69.Effect of non-registration.-(1) No suit to enforce a right arising<\/p>\n
         from a contract or conferred by this Act shall be instituted in any<\/p>\n
         Court by or non behalf of any person suing as a partner in a firm<\/p>\n
         against the firm or any person alleged to be or to have been a<\/p>\n
         partner in the firm unless the firm is registered and the person<\/p>\n
         suing is or has been shown in the Register of Firm as a partner in<\/p>\n
         the firm.\n<\/p><\/blockquote>\n
         (2) No suit to enforce a right arising from a contract shall be<\/p>\n
         instituted in any Court by or on behalf of a firm against any third<\/p>\n
         party unless the firm is registered and the persons suing are or<\/p>\n
         have been shown in the Register of Firms as partners in the firm.<\/p>\n
         (3) The provisions of sub-sections (1) and (2) shall apply also to a<\/p>\n
         claim of set-off or other proceeding to enforce a right arising from
\n RSA No.117 of 2009(O&M)                                                       6<\/span><\/p>\n
         a contract, but shall not affect.-\n<\/p><\/blockquote>\n
         (a) the enforcement of any right to sue for the dissolution of a firm<\/p>\n
         or for accounts of a dissolved firm, or any right or power to<\/p>\n
         realise the property of a dissolved firm, or<\/p>\n<\/blockquote>\n
         (b)the powers of an official assignee, receiver or Court under the<\/p>\n
         Presidency-towns Insolvency Act, 1909, or the Provincial<\/p>\n
         Insolvency Act, 1920, to realise the property of an insolvent<\/p>\n
         partner .\n<\/p><\/blockquote>\n
         (4) This section shall not apply,-\n<\/p><\/blockquote>\n
         (a) to firms or to partners in firms which have no place of business<\/p>\n
         in [the territories to which this Act extends], or whose places of<\/p>\n
         business in the [the said territories] are situated in areas to which,<\/p>\n
         by notification under [Section 56], this Chapter does not apply,or<\/p>\n<\/blockquote>\n
         (b) to any suit or claim of set off not exceeding one hundred<\/p>\n
         rupees in value which, in the Presidency-towns, is not of a kind<\/p>\n
         specified in section 19 of the Presidency Small Cause Courts Act,<\/p>\n
         1882, or outside the Presidency-towns, is not of a kind specified<\/p>\n
         in the Second Schedule to the Provincial Small Cause Courts<\/p>\n
         Act,1887, or to any proceeding in execution or other proceeding<\/p>\n
         incidental to or arising from any such suit or claim”<\/p>\n<\/blockquote>\n
              Thus, since the suit had been filed by the plaintiff seeking<\/p>\n
enforcement of a right arising from an unregistered firm, both the Courts<\/p>\n
below rightly held that the suit of the plaintiff was not maintainable. Both<\/p>\n
the Courts below, after appreciating the evidence on record, have given a<\/p>\n
finding of fact that in the receipts Exhibit PW1\/B and Exhibit PW2\/B, there<\/p>\n
was no mention that the amount had been received by the defendant from
\n RSA No.117 of 2009(O&M)                                                    7<\/span><\/p>\n
the plaintiff.<\/p><\/blockquote>\n
                 No substantial question of law arises in this regular second<\/p>\n
appeal which would warrant interference by this Court, Accordingly, this<\/p>\n
appeal is dismissed.\n<\/p>\n<\/p>\n
                                                   (Sabina)
\n                                                     Judge
\nOctober 06, 2009<\/p>\n
arya\n <\/p>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Achhru Ram vs Narinder Kumar Jain on 6 October, 2009 RSA No.117 of 2009(O&M) 1 IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH R.S.A. No. 117 of 2009 (O&M) Date of Decision:October 06, 2009 Achhru Ram ………..Appellant Versus Narinder Kumar Jain ……….Respondent Coram: Hon’ble Mrs. Justice Sabina Present: Mr.A.S.Syan, Advocate for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-103133","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nAchhru Ram vs Narinder Kumar Jain on 6 October, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/achhru-ram-vs-narinder-kumar-jain-on-6-october-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Achhru Ram vs Narinder Kumar Jain on 6 October, 2009 - 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