HER HIGHNESS MAHARANI MANDALSA DEVI AND ORS. versus M. RAMNARAIN (P) LTD. AND ORS.

HER HIGHNESS MAHARANI MANDALSA DEVI AND ORS. versus M. RAMNARAIN (P) LTD. AND ORS.

Where a firm includes a partner entitled to sovereign immunity and a suit is brought without the Central Government's consent, the decree is a nullity only against that partner, but remains valid and executable against the other partners and partnership property. Defences in execution are limited to collusion, fraud, special protection under law, or nullity.

Parties
Appellant: Her Highness Maharani Mandalsa Devi and Others; Respondent No. 1: M. Ramnarain (P) Ltd.
Jurisdiction
India
Judgment Date
19 March 1965
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Judgment and Order Dated November 21, 1958 (appeal No. 31 of 1958, Bombay High Court)
Outcome
Appeal dismissed with costs.
Legal Topics
Execution of Decrees Against Partners, Sovereign Immunity, Liability of Partners, Protection Under Code of Civil Procedure
Civil Procedure Execution of Decrees Against Partners Sovereign Immunity Liability of Partners Protection Under Code of Civil Procedure

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Parties

Her Highness Maharani Mandalsa Devi and Others

Appellant

M. Ramnarain (P) Ltd.

Respondent No. 1

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Judgment and Order Dated November 21, 1958 (appeal No. 31 of 1958, Bombay High Court)

Legal Issues

  1. 1 Whether in absence of the Central Government's consent, a suit against a firm including a Ruler of a former Indian State as partner is competent
  2. 2 Whether the decree can be executed against the other partners where one partner enjoys sovereign immunity
  3. 3 What defences are available to partners against whom execution is sought under Order 21 Rule 50(2) CPC

Ratio Decidendi

Where a firm includes a partner entitled to sovereign immunity and a suit is brought without the Central Government's consent, the decree is a nullity only against that partner, but remains valid and executable against the other partners and partnership property. Defences in execution are limited to collusion, fraud, special protection under law, or nullity.

Court Disposition

Appeal dismissed with costs.

Orders

  • Leave granted to execute the decree against appellants as partners in the firm under Order 21, Rule 50(2) CPC.
  • No execution against the Maharaja of Sirmur without Central Government consent.