Case Law Details
M/S. Hindustan Infrastructure Construction Corporation Limited & Anr. Vs M/S. R.S. Woods International & Ors. (Delhi High Court)
Admittedly the respondents an unregistered partnership firm has filed a Civil Suit for recovery of money on account of dishonour of cheques issued to it by the defendants.
In the instant case, the respondent is seeking enforcement of the liability of the petitioners created under Section 30 and 37 of the Negotiable Instruments Act, 1881 as the cause of action for the plaint is based on the dishonour of the said cheques. Since, the suit is not based on any contract between the parties, the bar under Section 69 (2) of the of the Indian Partnership Act,1932 would not apply.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
1. The impugned order dated 09.10.2017 passed by the court of learned Additional District Judge-03, West District, Tis Hazari Courts, Delhi (‘ADJ’) in Civil Suit No.613734/16 titled as M/s. R.S. Wood International vs. M/s. Bhayana Builders Hindustan Infrastructure JV Pvt. Ltd. & Ors. dismissing the application of the petitioners/defendants under Order VII Rule 11 of the Code of Civil Procedure, 1908 (‘CPC’) is the subject-matter of challenge in this revision petition.
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Times have changed ; so also the tides of Time.
WRT
“Since, the suit is not based on any contract between the parties, the bar under Section 69 (2) of the Act would not apply.”
The judicial view the court has thus taken makes for a progressive and pragmatic down-to-earth verdict; setting the trend requiring to be rightly followed , without standing or insisting upon a hollow outdated requirement of a ‘ formal registration’.
To dilate (:
The formality of registration of an entity , it needs to be made a conscious note, has lost its legal significance over the times. If scouted around diligently, one will not fail to identify instances galore to prove /demonstrate or illustrate the point.
For an example, look up cases in which, entities such as –
‘social clubs’ ;
‘property owners association’; or
the like.
have succeeded in taking on and successfully pursued litigation, in civil, criminal and other courts or adjudicating /forums, such as Consumer courts, for having their common grievances settled and resolved.
in Short, the so called “class action” has come to stay as a convenient and lawful recourse for seeking and securing ‘justice’.
Master Note: This is an aspect which has assumed greater significance, especially in recent years, in all such related matters- one of which is claim for tax exemption on the ground of/ by invoking the age old “Doctrine of Mutuality”.
For a discussion and exposition of the referred principle, if care to, suggest to go through the Articled displayed, not long ago, on this website itself.
courtesy