SETH BADRI PRASAD AND OTHERS versus SETH NAGARMAL AND OTHERS

SETH BADRI PRASAD AND OTHERS versus SETH NAGARMAL AND OTHERS

A suit for accounts by the members of an unregistered association consisting of more than 20 persons, formed in contravention of Section 4(2) of the Rewa State Companies Act, 1935, is not maintainable as the association is inherently illegal and the courts cannot aid enforcement of rights arising from such illegal association.

Parties
Appellants: Seth Badri Prasad and Others; Respondents: Seth Nagarmal and Others
Jurisdiction
India
Judgment Date
09 December 1958
Procedural Posture
Civil Appeal / Appeal From the Judgment and Decree Dated November 20, 1951, of the Former Court of Judicial Commissioner, Vindhya Pradesh
Outcome
Appeal dismissed.
Legal Topics
Maintainability of Suit, Illegality of Association, Unregistered Associations, Section 4(2) Rewa Companies Act, 1935, Section 69(3)(a) Indian Partnership Act, 1932
Company Law Partnership Law Maintainability of Suit Illegality of Association Unregistered Associations Section 4(2) Rewa Companies Act, 1935 Section 69(3)(a) Indian Partnership Act, 1932

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Parties

Seth Badri Prasad and Others

Appellants

Seth Nagarmal and Others

Respondents

Procedural Posture

Civil Appeal / Appeal From the Judgment and Decree Dated November 20, 1951, of the Former Court of Judicial Commissioner, Vindhya Pradesh

Legal Issues

  1. 1 Whether a suit is maintainable by members of an unregistered association consisting of more than 20 persons contrary to Section 4(2) of the Rewa State Companies Act, 1935.
  2. 2 Whether accounts can be claimed from the president of such an association after its dissolution.

Ratio Decidendi

A suit for accounts by the members of an unregistered association consisting of more than 20 persons, formed in contravention of Section 4(2) of the Rewa State Companies Act, 1935, is not maintainable as the association is inherently illegal and the courts cannot aid enforcement of rights arising from such illegal association.

Court Disposition

Appeal dismissed.

Orders

  • The parties must bear their own costs of the hearing in this Court.