Dismissed

M/S. Pragati Developers (Trhourgh Its Partners) Jakir Majid Hoble and Anr. v. M/S. Cornis Realty Pvt. Ltd. Thr. Its Director Yogesh Vasant Wani

Bombay HC29 Mar 2023IA/2288/2023

Case brief

AI extract

What is this about?

The High Court rejected the appeal, upholding the Trial Court's ruling that a suit filed by an unregistered partnership firm for enforcement of contractual rights is not maintainable under Section 69(2) of the Indian Partnership Act, noting that subsequent registration cannot cure the defect.

What did the court decide?

Appellants to pay Rs.1,00,000/- as cost to respondent within four weeks.

M/S. Pragati Developers (Trhourgh Its Partners) Jakir… — Company and Corporate | Bombay HC (2023)

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17-ia-2288-23.doc

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Digitally signed by 1 / 3 MEERA MEERA MAHESH MAHESH JADHAV JADHAV Date: 2023.03.31 IN THE HIGH COURT OF JUDICATURE AT BOMBAY 12:34:24 CIVIL APPELLATE JURISDICTION +0530 INTERIM APPLICATION NO.2288 OF 2023 IN

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FIRST APPEAL NO.1469 OF 2019

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M/s Pragati Developers (through its partner)
Jakir Majid Hoble & Anr….Applicants/Appellants

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 V/s.

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M/s Cornis Realty Pvt Ltd through its
Director Yogesh Vasant Wani…Respondents

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WITH
CIVIL APPLICATION NO.3404 OF 2019
IN
FIRST APPEAL NO.1469 OF 2019

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----
Mr. R. D. Soni a/w Mr. Sujay Gawade and Ms Mudita Pawar i/b Shree & Co.
for Applicants

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Mr. Hitesh Vyas for Respondents

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 ----

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CORAM : K.R. SHRIRAM &

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 RAJESH S. PATIL JJ
 DATED : 29th MARCH 2023

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P.C. :

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1 Today only two interim applications are listed, one of which, is for

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extension of stay. With the consent of the counsel, we decided to take up
the appeal itself for admission.

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2 This appeal is impugning a judgment dated 6^th May 2019 passed by

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Joint Civil Judge Senior Division, Pune, holding that appellants’ suit was not
maintanable since appellant no.1 was not a firm registered as per the

Meera Jadhav

17-ia-2288-23.doc

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mandate of Partnership Act and the persons suing were not shown in the
Register of Firms as partners of the firm as per the mandate of Section 69(2)
of Indian Partnership Act 1933. Admittedly, the firm was not registered on
the date the suit was instituted. The suit was instituted on 27th March 2014
in the name of partnership firm under the name and style of Pragati
Developers. The firm was registered on 13th November 2018 during the
pendency of the suit and when appellants’ witness was under cross-
examination.

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3The law is settled law that on the date the suit is instituted in any
court by or on behalf of a firm against third party to enforce right arising
from a contract, the firm should be registered and the persons suing should
be shown in the Register of Firms as partners in the firm. The subsequent
registration cannot cure that defect in view of the plain language of Section
69 of the Indian Partnership Act (M/s Shreeram Finance Corporation Vs.
Yasin Khan & Ors.1 and Delhi Development Authority Vs. Kochhar
Constructions Work2).

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4The suit filed has been for avoidance of a Sale Deed dated 15th
October 2013 registered at Serial No.1909 of 2013 at the office of Sub-
Registrar, Haveli No.26. Appellants had also sought declaration about the
status of the said transaction, perpetual injunction and payment of balance
consideration amount being alternative relief. Therefore, indisputably the
suit filed was for enforcement of right arising from the contract.

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1 . (1989) 3 SCC 476

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2 . (1998) 8 SCC 559

Meera Jadhav

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5 The Trial Court has rightly come to the conclusion that the prohibition contained in Section 69(2) of the Indian Partnership Act is a bar to the suit and that the suit is not maintainable.

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6 In the circumstances, appeal dismissed. Appellant to pay a sum of Rs.1,00,000/- as cost to respondent and this amount shall be paid within four weeks from today by way of cheque drawn in favour of advocate for respondent.

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7 Consequently, interim applications also stand disposed.

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(RAJESH S PATIL, J.)

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(K.R. SHRIRAM, J.)

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Meera Jadhav

M/S. Pragati Developers (Trhourgh Its Partners) Jakir Majid Hoble and Anr. v. M/S. Cornis Realty Pvt. Ltd. Thr. Its Director Yogesh Vasant Wani

Case brief

What is this about?

What did the court decide?

M/S. Pragati Developers (Trhourgh Its Partners) Jakir Majid Hoble and Anr. v. M/S. Cornis Realty Pvt. Ltd. Thr. Its Director Yogesh Vasant Wani

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Coram

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