Brij Kishore Sharma and Anr. v. M/S Ram Singh and Sons and Ors.
This appeal by special leave arises from the judgment of the Division
Bench of the Patna High Court made on May 2, 1980 in appeal from
Original Decree No. 306/69.
The respondents filed a suit to recover a sum of Rs. 58,880 on the
foot of a promissory note dated April 1, 1960 to recover the principal sum
of Rs. 46,380 and interest which accrued thereon. The trial Court dismissed
the suit. But on appeal, the High Court allowed the appeal and decreed
the suit. Thus, this appeal by special leave.
Two points were raised in the written statement and argued by the
respondents. The first point that was addressed and pressed for considera-
tion is that the respondent-plaintiff being a partnership firm, has not
impleaded all the partners co-nominees as plaintiff-party to the suit. Resul
tantly, the suit is not maintainable. Pending suit, one of the partners died
and the legal representatives were not brought \:"In record. The question, D
therefore, was: whether the suit is liable to be dism:issed for non-joinder of
· the necessary and proper parties? The trial Court as well as the High Court
recorded as a fad that the respondent- firm is a registered partnership firm
and, therefore, under Section 69 of the Partnership Act, the suit is main
tainable. The trial Court dismissed the suit on the ground that since one E
of the partners died pending suit and the legal representatives were not
brought on record, suit was bad for non-joinder of necessary and proper
parties. The controversy is covered by the provisions of Order XXX of the
CPC which gives spxial procedure for filing the suit by or against a
partnership firm carrying on business in the name other than its own. In this
case, the relevant provision is Rule 4 of Order XXX which provides thus: F
"Order XXX Rule 4: (1) Notwithstanding anything contained in
Section 45 of the Indian Contract Act, 1872 (of 1872), where two
or more persons may sue or be sued in the name of a firm under
the foregoing provisions and any of such persons dies, whether G
before the institution or during the pendency of any suit, it shall
not be necessary to join the legal representatives of the deceased
as a party to the suit.
(2) Noting in sub-rule (1) shall limit or otherwise affect any right
which the legal representative of the deceased may have.- H
A (a) to apply to be made a party to the suit, or
(b) to enforce any claim against the survivor or survivors."
Sub-rule (2) is not relevant for the purpose of this case. By operation
of sub-rule (1) of Rule 4 of Order XXX, despite the embargo under
B Section 45 of the Indian Contract Act, it is not necessary that the legal
representatives of the deceased partner who dies whether before institution
of the proceedings or during the pendency of proceedings, should be
substituted as a co-nominee party plaintiff/defendant to the suit. The trial
Court, therefore, was not correct in holding that the suit is bad for
C non-joinder of necessary party. The High Court was right in the conclusion
that the suit is maintainable.
The next plea raised was that the renewal of promissory note was not
executed by the appellants. The ground in support thereof was that one of
the coparceners who was the signatory to the promissory note was
D hospitalised. Consequently, he could not have executed the promissory
note on the even date. The High Court has gone into depth of this aspect
by consideration of the entire evidence on record, mostly documentary
evidence. Since it is a question of appreciation of evidence and the High
Court, as the final court of fact, on appreciation thereof came to the
conclusion that the promissory note came to be executed by all the persons
E and, therefore, the appellants-defendants are liable for the payment of the
amount duf' thereunder. This being the finding of fact, we do not find any
error of law in the finding recorded by the High Court.
The appeal is accordingly dismissed. No costs.
F R.P. Appeal dismissed.
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