{"id":212316,"date":"1977-07-28T00:00:00","date_gmt":"1977-07-27T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vasant-rao-and-another-vs-shyamrao-and-ors-on-28-july-1977"},"modified":"2018-05-28T22:47:34","modified_gmt":"2018-05-28T17:17:34","slug":"vasant-rao-and-another-vs-shyamrao-and-ors-on-28-july-1977","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vasant-rao-and-another-vs-shyamrao-and-ors-on-28-july-1977","title":{"rendered":"Vasant Rao And Another vs Shyamrao And Ors on 28 July, 1977"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Vasant Rao And Another vs Shyamrao And Ors on 28 July, 1977<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1977 AIR 2021, \t\t  1978 SCR  (1) 218<\/div>\n<div class=\"doc_author\">Author: A Gupta<\/div>\n<div class=\"doc_bench\">Bench: Gupta, A.C.<\/div>\n<pre>           PETITIONER:\nVASANT RAO AND ANOTHER\n\n\tVs.\n\nRESPONDENT:\nSHYAMRAO AND ORS.\n\nDATE OF JUDGMENT28\/07\/1977\n\nBENCH:\nGUPTA, A.C.\nBENCH:\nGUPTA, A.C.\nSHINGAL, P.N.\n\nCITATION:\n 1977 AIR 2021\t\t  1978 SCR  (1) 218\n 1977 SCC  (4)\t 9\n\n\nACT:\nCompanies  Act,\t 1956,\tPart  X,  S.  590  vis-a-vis  Indian\nPartnership  Act,  1932.  for  winding\tup  of\tunregistered\ncompanies.\n\n\n\nHEADNOTE:\nIn  a civil suit for the dissolution of partnership  between\nthe  appellants and respondents, the  defendants-respondents\nraised\tan objection that the court had no  jurisdiction  to\nentertain  the suit in view of Part X of the Companies\tAct,\n1956\t     application was rejected by the Trial Court and\nthereafter by the  High Court in revision.\nit  was\t argued\t before this Court that as  Part  X  of\t the\nCompanies Act contains special provisions for the winding up\nof unregistered companies including partnerships  containing\nmore. than seven members, such partnerships can be wound  up\nonly  in  accordance with the procedure\t prescribed  in\t the\nCompanies  Act,\t and that the suit before the  Senior  Civil\nJudge was not maintainable.\nDismissing the appeal by special leave, the Court,\nHELD  :\t The provisions for winding up of the affairs  of  a\nfirm which Chapter VI of the Indian Partnership Act contains\nbesides\t provisions for the dissolution of partnership,\t are\nleft  untouched by Section 590 of the Companies\t Act,  1956.\nSection\t 590 makes it clear that Part X of the Act does\t not\naffect\tthe operation of other enactments providing for\t any\npartnership,  association or company being wound up.  [220H,\n221A]\nPattada Authayya v. Pattada Somayya &amp; Ors.  AIR 1955  Mysore\n149, partly over-ruled.\n\n\n\nJUDGMENT:\n<\/pre>\n<p>CIVIL APPELLATE JURISDICTION : Civil Appeal No. 393 of 1977.<br \/>\nApopeal\t by Special Leave from the Judgment and Order  dated<br \/>\n8-10-1976  of  the Bombay High Court in Civil  Revision\t No.<br \/>\n137\/76.\n<\/p>\n<p>K.   S.\t Ramamoorthy, S. Balakrishnan and N. N. Ghatate\t for<br \/>\nthe Appellants.\n<\/p>\n<p>Naunit\t Lal,  Miss  Latita  Kohli  and\t S.  G.\t Ghate\t for<br \/>\nRespondents Nos.  1 and 3 to 6.\n<\/p>\n<p>The Judgment of the Court was delivered by<br \/>\nGUPTA,\tJ.-The two appellants and the six  respondents\twere<br \/>\npartners  of a firm called &#8220;Shivraj Fine Art Litho  &#8216;Works.&#8221;<br \/>\nThe appellants as plaintiffs instituted civil suit No. 9  of<br \/>\n1974  in the Court of the Senior Civil Judge,,\tNagpur,\t for<br \/>\ndissolution  of\t the partnership  and  accounts.The  reliefs<br \/>\nasked\tfor   included\t a   declaration   that\t  the\tfirm<br \/>\nstood  dissolved  on and from January 9, 1974.\t It  appears<br \/>\nthat   thereafter  the\toriginal  defendants  who  are\t the<br \/>\nrespondents before us were transposed as plaintiffs and\t the<br \/>\nappellants   who   were\t originally  the   plaintiffs\twere<br \/>\ntransferred  to\t the category of  defendants.The  transposed<br \/>\ndefendants raised an\t     objection that the court hadno<br \/>\njurisdiction to entertain the suit in view of the provisions<br \/>\nof Part X<br \/>\n<span class=\"hidden_text\">219<\/span><br \/>\nof  the Companies Act, 1956.  The trial court  rejected\t the<br \/>\napplication.   The  defendants then moved the,\tBombay\tHigh<br \/>\nCourt,\tNagpur Bench, in &#8216;revision.  The High  Court  having<br \/>\ndismissed the revision petition the present appeal has\tbeen<br \/>\nfiled with special leave granted by this Court.<br \/>\nit  is argued on behalf of the appellants that as Part X  of<br \/>\nthe Companies, Act, 1956 contains special provisions for the<br \/>\nwinding\t up of unregistered companies, which  expression  as<br \/>\ndefined\t in  that Act includes a partnership  consisting  of<br \/>\nmore than seven members, any action for the winding up\tsuch<br \/>\na  partnership\tmust  be in accordance\twith  the  procedure<br \/>\nprescribed  for that purpose in the Companies Act,  and\t the<br \/>\nsuit  instituted in the court of the Senior Civil Judge\t was<br \/>\nnot  maintainable.   Part X of the  Companies  Act  includes<br \/>\nsections  582  to 590.\tSection 582 defines  the  expression<br \/>\n&#8220;unregistered company&#8221; as follows :\n<\/p>\n<blockquote><p>\t      Meaning of &#8220;unregistered Company&#8221;.<br \/>\n\t      &#8220;unregistered company\n<\/p><\/blockquote>\n<blockquote><p>\t      (a)   shall not include-\n<\/p><\/blockquote>\n<blockquote><p>\t      (i)   a  railway company incorporated  by\t any<br \/>\n\t      Act  of Parliament or other Indian law or\t any<br \/>\n\t      Act of Parliament of the United Kingdom;\n<\/p><\/blockquote>\n<blockquote><p>\t      (ii)a company registered under this Act; or\n<\/p><\/blockquote>\n<blockquote><p>\t      (iii)a company registered under any  previous<br \/>\n\t      companies\t law  and not being  a\tcompany\t the<br \/>\n\t      registered office whereof was in Burma ,\tAden<br \/>\n\t      or Pakistan immediately before the  separation<br \/>\n\t      of that country from India; and\n<\/p><\/blockquote>\n<blockquote><p>\t       (b)  save  as  aforesaid, shall\tinclude\t any<br \/>\n\t      partnership. association or company consisting<br \/>\n\t      of more than seven members at the time  when<br \/>\n\t      the  petition for winding up the\tpartnership,<br \/>\n\t      association or company as the case may be,  is<br \/>\n\t      presented before the Court.&#8221;\n<\/p><\/blockquote>\n<p>It is not disputed that the partnership in question had more<br \/>\nthan seven members at the time when the suit was instituted.<br \/>\nThis  was therefore an &#8220;unregistered company&#8221; as defined  in<br \/>\nsection\t 582(b).  Section 583(1) states that subject to\t the<br \/>\nprovisions  of this Part, any unregistered company  may,  be<br \/>\nwound up under this Act, and all the provisions of this\t Act<br \/>\n&#8216;with  respect to winding up shall apply to an\tunregistered<br \/>\ncompany,  with\tthe exceptions and  additions  mentioned  in<br \/>\nsubsections  (2) to (5)&#8221;.  It is not necessary to  refer  in<br \/>\nany  great detail to these sub-sections except to point\t out<br \/>\nthat sub-section (4) mentions the circumstances in which  an<br \/>\nunregistered  company  may  be\twound up,  and\tone  of\t the<br \/>\ncircumstances  is that the company has been  dissolved.\t  It<br \/>\nmay also be stated that under subsection<br \/>\n<span class=\"hidden_text\">220<\/span><br \/>\n(3)  no unregistered company can be wound up under this\t Act<br \/>\nvoluntarily  or subject to the supervision of the court\t and<br \/>\ncan only be wound up by the court.  Admittedly this is not a<br \/>\ncase  of voluntary winding up or winding up subject  to\t the<br \/>\nsupervision  of\t the  court.  Chapter  VI  of,,\t the  Indian<br \/>\nPartnership  Act,  1932\t also contains\tprovisions  for\t the<br \/>\ndissolution  of a firm and its winding up  on  &#8216;dissolution.<br \/>\nThe  argument  for  the\t appellants  is\t that  the   special<br \/>\nprovisions  of\tPart  X of the\tCompanies  Act\texclude\t the<br \/>\noperation  of the general law contained in  the\t Partnership<br \/>\nAct  in the matter of winding up of a firm having more\tthan<br \/>\nseven persons, and as the Civil Judge trying the suit  shall<br \/>\nhave to apply the Partnership Act, the suit is not maintain-<br \/>\nable.\n<\/p>\n<p>It  is\tdifficult to appreciate why the suit should  not  be<br \/>\nmaintainable  at  any  rate in. so far as  it  is  one,\t for<br \/>\ndissolution  of\t the firm.  As already stated,\tone  of\t the<br \/>\nreliefs\t prayed\t for is a declaration that  the\t firm  stood<br \/>\ndissolved  from January 9, 1974.  This is not a relief\tthat<br \/>\ncan be claimed in a proceeding under Part X of the Companies<br \/>\nAct  which  provides  for the  winding\tup  of\tunregistered<br \/>\ncompanies.  However it is not necessary to consider  whether<br \/>\nthe  Civil Judge had jurisdiction to entertain some  of\t the<br \/>\nclaims\tmade  in  the  suit,  because  section\t590  of\t the<br \/>\nCompanies Act makes it clear that Part X of the Act does not<br \/>\naffect the operation of the Indian Partnership Act.  Section<br \/>\n590 states<br \/>\nSaving\tand construction of enactments conferring  power  to<br \/>\nwind  up  partnership,\tassociation or\tcompany\t in  certain<br \/>\ncases.\n<\/p>\n<blockquote><p>\t      &#8220;Nothing\t in  this  Part\t shall\taffect\t the<br \/>\n\t      operation of any enactment which provides\t for<br \/>\n\t      any partnership, association or company  being<br \/>\n\t      wound up, or being wound up as a company or as<br \/>\n\t      an unregistered company, under the Indian Com-<br \/>\n\t      panies &#8216;Act, 1913 or any Act repealed by\tthat<br \/>\n\t      Act :\n<\/p><\/blockquote>\n<blockquote><p>\t      Provided that references in any such enactment<br \/>\n\t      to&#8217;  any\tprovision contained  in\t the  Indian<br \/>\n\t      Companies Act, 1913 or in any Act repealed  by<br \/>\n\t      that  Act shall be read as references  to\t the<br \/>\n\t      corresponding  provision, if any contained  in<br \/>\n\t      this Act.&#8221;\n<\/p><\/blockquote>\n<p>As  the marginal note to this section indicates, this  is  a<br \/>\nsaving provision.  It leaves unaffected the operation of any<br \/>\nenactment   (a)\t  which\t  provides  for\t  any\tpartnership,<br \/>\nassociation or company being wound up, or (b) which provides<br \/>\nfor any partnership,association or company being wound up as<br \/>\na  company or as an unregistered company under\tthe   Indian<br \/>\nCompanies  Act,\t 1913 or any Act repealed by that  Act.\t  An<br \/>\nenactment  means the whole Act or a part of  it.The  proviso<br \/>\nwhich  contains a  rule\t   of construction of references  in<br \/>\nany such enactment  to any provision in the Indian Companies<br \/>\nAct, 1913 or any Actress pealed by that Act is not relevant for<br \/>\nthe  present  purpose.It is. clear that the  provisions\t for<br \/>\nwinding up of the affairs of a firm which Chapter VI of\t the<br \/>\nIndian\tPartnership Act contains besides provisions for\t the<br \/>\ndissolution of partnership are left untouched by section 590<br \/>\nof the<br \/>\n<span class=\"hidden_text\">221<\/span><br \/>\nCompanies  Act,\t 1956.\tThe cases cited in  support  of\t the<br \/>\nrespective contentions of the parties are not really on\t the<br \/>\npoint under consideration except the decision of the  Mysore<br \/>\nHigh,  Court  in  Pattada Authayya v.  Pattada\tSomayya\t and<br \/>\nothers(1),  to\twhich counsel for the  appellants  referred.<br \/>\nThe  Mysore case contains an observation on section  271  of<br \/>\nthe Indian Companies Act, 1913 which corresponds to  section<br \/>\n590  of the, Companies Act, 1956.  The learned single  Judge<br \/>\nwho decided the case held that there was nothing in  section<br \/>\n271  or in the words &#8220;any unregistered company may be  wound<br \/>\nup&#8221; appearing in that section to indicate that the aggrieved<br \/>\nparty had an option to institute a suit for winding up of an<br \/>\nunregistered  company.\tThis decision does not take note  of<br \/>\nsub-section  (2) of section 271 which is similar to  section<br \/>\n590  of\t the  Companies Act,  1956  leaving  unaffected\t the<br \/>\noperation of other enactments providing for any partnership,<br \/>\nassociation or company being wound up.\n<\/p>\n<p>The appeal is dismissed with costs.\n<\/p>\n<p>M.R.\n<\/p>\n<p>Appeal dismissed.\n<\/p>\n<p>(1)A.I.R. 1955 Mysore 149.\n<\/p>\n<p><span class=\"hidden_text\">222<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Vasant Rao And Another vs Shyamrao And Ors on 28 July, 1977 Equivalent citations: 1977 AIR 2021, 1978 SCR (1) 218 Author: A Gupta Bench: Gupta, A.C. PETITIONER: VASANT RAO AND ANOTHER Vs. RESPONDENT: SHYAMRAO AND ORS. DATE OF JUDGMENT28\/07\/1977 BENCH: GUPTA, A.C. BENCH: GUPTA, A.C. SHINGAL, P.N. CITATION: 1977 AIR [&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-212316","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>Vasant Rao And Another vs Shyamrao And Ors on 28 July, 1977 - 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\/vasant-rao-and-another-vs-shyamrao-and-ors-on-28-july-1977\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vasant Rao And Another vs Shyamrao And Ors on 28 July, 1977 - Free Judgements of Supreme Court &amp; 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