{"id":112530,"date":"1989-07-21T00:00:00","date_gmt":"1989-07-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shreeram-finance-corporation-vs-yasin-khan-and-others-on-21-july-1989"},"modified":"2017-05-15T14:01:34","modified_gmt":"2017-05-15T08:31:34","slug":"shreeram-finance-corporation-vs-yasin-khan-and-others-on-21-july-1989","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shreeram-finance-corporation-vs-yasin-khan-and-others-on-21-july-1989","title":{"rendered":"Shreeram Finance Corporation vs Yasin Khan And Others on 21 July, 1989"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Shreeram Finance Corporation vs Yasin Khan And Others on 21 July, 1989<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1989 AIR 1769, \t\t  1989 SCR  (3) 484<\/div>\n<div class=\"doc_author\">Author: M Kania<\/div>\n<div class=\"doc_bench\">Bench: Kania, M.H.<\/div>\n<pre>           PETITIONER:\nSHREERAM FINANCE CORPORATION\n\n\tVs.\n\nRESPONDENT:\nYASIN KHAN AND OTHERS\n\nDATE OF JUDGMENT21\/07\/1989\n\nBENCH:\nKANIA, M.H.\nBENCH:\nKANIA, M.H.\nSINGH, K.N. (J)\n\nCITATION:\n 1989 AIR 1769\t\t  1989 SCR  (3) 484\n 1989 SCC  (3) 476\t  JT 1989 (3)\t146\n 1989 SCALE  (2)51\n\n\nACT:\n    Partnership\t Act,  1932: Sections 59 and 69--Suit  filed\nby  registered firm--Person suing--Not shown as partners  in\nRegister of Firms--Suit whether maintainable.\n\n\n\nHEADNOTE:\n    Under  a Hire Purchase agreement entered into  with\t the\nappellant,  a  firm registered under  the  Partnership\tAct,\n1932,  carrying on the business of hire-purchase of  automo-\nbile vehicles, Respondent No. 1 hired the truck owned by the\nappellant,  under the agreement Respondent No. 1  agreed  to\npay  initial hire charge of Rs. I0,000 and  certain  monthly\nhire charges on due dates. On the failure of Respondent\t No.\n1 to pay the monthly hire charges, after paying the  initial\nhire charges and charges for one month, the appellant  filed\na  suit against Respondent No. 1 and his guarantor  on\tJuly\n22,  1968,  for the recovery of a sum of Rs.  13,422.23\t for\nbreach of terms and conditions of the agreement.\n    There  was a change in the constitution of the  firm  on\nJuly  1, 1967 with the retirement of two of the\t then  part-\nners,  and addition of one new partner as also admission  of\ntwo  minors to the benefits of the Partnership. This  change\nwas  notified to the Registrar of Firms on August  28,\t1968\nand  was duly taken note of in the Register of Firms  subse-\nquently. Thus, no notice of the change had been given to the\nRegistrar  of firms. The Trial Judge dismissed the  suit  as\nnot maintainable in view of Section 69(2) of the Partnership\nAct, 1932. Upholding this decision, the High Court dismissed\nthe appeal of the firm. Hence, the appeal, by special leave,\nby the appellant firm.\nDismissing the appeal, the Court.\n    HELD:  Sub-section (2) of Section 69 of the\t Partnership\nAct lays down that no suit to enforce a right arising from a\ncontract shall be instituted in any Court by or on behalf of\na firm against any third-party unless the firm is registered\nand the persons suing were or had been shown in the Register\nof Firms as partners in the firm. [487C]\nIn the present case, the suit tided by the appellant firm is\nclearly\n485\nhit  by the provisions of sub-section (2) of Section  69  of\nthe  said Partnership Act, as on the date when the suit\t was\nfiled,\ttwo  of the partners shown as partners\tas  per\t the\nrelevant entries in the Register of Firms were not, in fact,\npartners,  one\tnew partner had come in and two\t minors\t had\nbeen admitted to the benefit of the partnership firm regard-\ning  which  change no notice was given to the  Registrar  of\nFirms. Thus, the persons suing, namely, the current partners\nas on the date of the suit were not shown as partners in the\nRegister of Firms. Therefore, the suit was not\tmaintainable\nin  view of the provisions of sub-section (2) of section  69\nof the Partnership Act, 1932. [487D-E]\n    Although  the plaint was amended on a later\t date,\tthat\ncannot save the suit.\n\n\n\nJUDGMENT:\n<\/pre>\n<p>    CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 1548  of<br \/>\n1974.\n<\/p>\n<p>    From  the  Judgment and Order dated 12.12. 1972  of\t the<br \/>\nBombay High Court in F.A. No. 152 of 1972.\n<\/p>\n<p>    V.A. Bobde, B.R. Agarwala and R.B. Hathikhanwala for the<br \/>\nAppellants.\n<\/p>\n<p>M.S. Gupta for the Respondents.\n<\/p>\n<p>The Judgment of the Court was delivered by<br \/>\n    KANIA,  J.\tThis is an appeal by special  leave  granted<br \/>\nunder  Article 136 of the Constitution of India against\t the<br \/>\njudgment  of  a\t Division Bench of  the\t Bombay\t High  Court<br \/>\n(Nagpur Bench) in First Appeal No. 152 of 1972, the judgment<br \/>\nhaving been delivered on December 12, 1972.<br \/>\n    The appellants are a firm registered under the  Partner-<br \/>\nship  Act,  1932  and inter alia carry on  the\tbusiness  of<br \/>\nhire-purchase  of automobile vehicles. The  appellants\twere<br \/>\nthe  owners of a diesel truck complete with tools and  other<br \/>\naccessories. On January 24, 1962 respondent No. 1 hired\t the<br \/>\nsaid truck from the appellants under a Hire Purchase  Agree-<br \/>\nment in writing of the same date. Under the said  agreement,<br \/>\nrespondent  No. 1 agreed to pay to the appellants a  sum  of<br \/>\nRs. 10,000 as initial hire charges and certain monthly\thire<br \/>\ncharges.  It was provided under the said agreement  that  on<br \/>\nthe  payment  of  all the monthly  hire\t charges  and  other<br \/>\namounts payable under the agreement<br \/>\n<span class=\"hidden_text\">486<\/span><br \/>\non  the\t respective due dates and fulfilment  of  the  other<br \/>\nterms  and  conditions of the agreement,  respondent  No.  1<br \/>\nwould  have the option to purchase the said truck.  However,<br \/>\nif  any of the monthly hire charges were not paid  or  there<br \/>\nwas  a\tbreach\tof any of the terms and\t conditions  of\t the<br \/>\nagreement,  the appellants were entitled to take  possession<br \/>\nof  the truck. Until respondent No. 1 validly exercised\t the<br \/>\noption\tto  purchase the said truck, the said truck  was  to<br \/>\nremain\tthe property of the appellants. Respondent No. 2  is<br \/>\nthe  guarantor. Respondent No. 1 failed to pay\tthe  monthly<br \/>\nhire charges to the appellants as provided under the  agree-<br \/>\nment.  In fact, he paid only the initial hire of Rs.  10,000<br \/>\nand  hire  charges  for one month only.\t Giving\t up  certain<br \/>\nclaims\tfor damages and other items the appellants  filed  a<br \/>\nsuit in the Court of Civil Judge (Senior Division) at Nagpur<br \/>\nfor  recovery  of a sum of Rs. 13,422.23 p against  the\t re-<br \/>\nspondents.  Several issues were framed by the learned  Trial<br \/>\nJudge and they were all decided in favour of the appellants.<br \/>\nHowever,  the learned Trial Judge dismissed the suit on\t the<br \/>\nground\tthat it was not maintainable in view of\t the  provi-<br \/>\nsions  of  section 69(2) of the Partnership Act,  1932.\t The<br \/>\nappellants preferred an appeal against this decision to\t the<br \/>\nBombay\tHigh  Court  (Nagpur Bench). The  said\tappeal\twas,<br \/>\nhowever,  dismissed by the High Court upholding the view  of<br \/>\nthe learned Trial Judge regarding the non-maintainability of<br \/>\nthe  suit.  It is against this decision,  that\tthe  present<br \/>\nappeal is directed.\n<\/p>\n<p>    In order to appreciate the controversy before us, it  is<br \/>\nnecessary to take note of a few further facts none of  which<br \/>\nis disputed.\n<\/p>\n<p>The appellant-firm was registered under the Partnership Act,<br \/>\n1932 on November 2, 1960. There was a change in the  consti-<br \/>\ntution of the firm on July 1, 1962 but we are not  concerned<br \/>\nwith that change. What is material is that, on July 1, 1967,<br \/>\nthere  was  another change in the constitution of  the\tfirm<br \/>\nwhereby\t two of the then partners retired and one new  part-<br \/>\nner, namely, Smt. Sarita Agrawal joined as a partner of\t the<br \/>\nsaid  firm; and two minors, namely, Ashish Kumar  and  Rohit<br \/>\nKumar were admitted to the benefits of the said\t partnership<br \/>\nfirm. On the said date, namely, July 1, 1967 two of the then<br \/>\npartners, namely, Smt. Sheela R. Agrawal and Shri  Ramkishan<br \/>\nretired\t as aforestated from the said partnership firm.\t The<br \/>\nsuit  was instituted on July 22, 1968. The notice  regarding<br \/>\nthe change in the constitution of the said firm as aforesaid<br \/>\nwas given to the Registrar of Firms on August 28, 1968 and a<br \/>\nnote  was taken of the said change in the Register of  Firms<br \/>\nsubsequently.  Thus,  as pointed out by\t the  learned  Trial<br \/>\nJudge,\ton  the date when the suit was filed,  two  partners<br \/>\nshown  as  partners in the appellant-firm  in  the  relevant<br \/>\nentries in the Register of Firms had<br \/>\n<span class=\"hidden_text\">487<\/span><br \/>\nalready\t retired, one new partner had joined the  said\tfirm<br \/>\nand two minors had been admitted to the benefit of the\tsaid<br \/>\npartnership firm and no notice had been given to the  Regis-<br \/>\ntrar  of Firms in respect of these changes. The\t notice\t re-<br \/>\ngarding\t these changes was given to the Registrar  of  Firms<br \/>\nsubsequently and noted on November 19, 1968.<br \/>\n    Section  69 of the said Partnership Act deals  with\t the<br \/>\neffect of non-registration of firms. Sub-section (2) of\t the<br \/>\nsaid  section,\twhich is material for the purposes  of\tthis<br \/>\nappeal, runs as thus:\n<\/p>\n<blockquote><p>\t      &#8220;(2). No suit to enforce a right arising\tfrom<br \/>\n\t      a contract shall be instituted in any Court by<br \/>\n\t      or on behalf of a firm against any third-party<br \/>\n\t      unless the firm is registered and the  persons<br \/>\n\t      suing  are or have been shown in the  Register<br \/>\n\t      of Firms as partners in the firm.&#8221;<\/p><\/blockquote>\n<p>    In the present case the suit filed by the appellants  is<br \/>\nclearly hit by the provisions of sub-section (2) of  section<br \/>\n69 of the said Partnership Act, as on the date when the suit<br \/>\nwas filed, two of the partners shown as partners as per\t the<br \/>\nrelevant entries in the Register of Firms were not, in fact,<br \/>\npartners,  one\tnew partner had come in and two\t minors\t had<br \/>\nbeen admitted to the benefit of the partnership firm regard-<br \/>\ning  which  no notice was given to the Registrar  of  Firms.<br \/>\nThus, the persons suing, namely, the current partners as  on<br \/>\nthe  date  of  the suit were not shown as  partners  in\t the<br \/>\nRegister  of  Firms.  The result is that the  suit  was\t not<br \/>\nmaintainable in view of the provisions of sub-section (2) of<br \/>\nsection 69 of the said Partnership Act and the view taken by<br \/>\nthe  Trial  Court and confirmed by the High  Court  in\tthis<br \/>\nconnection is correct. Although the plaint was amended on  a<br \/>\nlater  date  that cannot save the suit. Reference  has\tbeen<br \/>\nmade  to some decisions in the judgment of the Trial  Court;<br \/>\nhowever, we do not find it necessary to refer to any of them<br \/>\nas the position in law, in our opinion, is clear on a  plain<br \/>\nreading\t of sub-section (2) of section 69 of the said  Part-<br \/>\nnership Act.\n<\/p>\n<p>In the result, the appeal fails and is dismissed with costs.\n<\/p>\n<pre>N.P.V.\t\t\t\t      Appeal dismissed.\n<span class=\"hidden_text\">488<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Shreeram Finance Corporation vs Yasin Khan And Others on 21 July, 1989 Equivalent citations: 1989 AIR 1769, 1989 SCR (3) 484 Author: M Kania Bench: Kania, M.H. PETITIONER: SHREERAM FINANCE CORPORATION Vs. RESPONDENT: YASIN KHAN AND OTHERS DATE OF JUDGMENT21\/07\/1989 BENCH: KANIA, M.H. BENCH: KANIA, M.H. SINGH, K.N. (J) CITATION: 1989 [&hellip;]<\/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":[30],"tags":[],"class_list":["post-112530","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shreeram Finance Corporation vs Yasin Khan And Others on 21 July, 1989 - Free Judgements of Supreme Court &amp; 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\/shreeram-finance-corporation-vs-yasin-khan-and-others-on-21-july-1989\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shreeram Finance Corporation vs Yasin Khan And Others on 21 July, 1989 - Free Judgements of Supreme Court &amp; 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