SHIV DEVELOPERS THROUGH ITS PARTNER SUNILBHAI SOMABHAI AJMERI versus AKSHARAY DEVELOPERS & ORS.

SHIV DEVELOPERS THROUGH ITS PARTNER SUNILBHAI SOMABHAI AJMERI versus AKSHARAY DEVELOPERS & ORS.

The bar under Section 69(2) of the Indian Partnership Act, 1932 was not attracted because the sale transaction challenged was not entered into by the plaintiff firm in the course of its business, and the suit seeks common law and statutory remedies (fraud, declaration, injunction) rather than enforcement of contractual rights arising from a business contract; accordingly the High Court order rejecting the plaint was set aside and the Trial Court order restoring trial was reinstated.

Parties
Plaintiff: SHIV DEVELOPERS THROUGH ITS PARTNER SUNILBHAI SOMABHAI AJMERI; Defendant: AKSHARAY DEVELOPERS & ORS.
Jurisdiction
India
Judgment Date
31 January 2022
Procedural Posture
Civil Appeal / Appeal Against High Court Order in Civil Revision Application No. 241 of 2017
Outcome
Appeal allowed; High Court judgment and order dated 15.02.2018 set aside; Trial Court order dated 07.04.2017 restored.
Legal Topics
Section 69(2) Non Registration Bar, Rejection of Plaint (order VII Rule 11 Cpc), Fraud and Misrepresentation, Enforcement of Contractual Vs Statutory/common Law Rights
Indian Partnership Act, 1932 Code of Civil Procedure, 1908 Specific Relief Act, 1963 Transfer of Property Act, 1882 Section 69(2) Non Registration Bar Rejection of Plaint (order VII Rule 11 Cpc) Fraud and Misrepresentation Enforcement of Contractual Vs Statutory/common Law Rights

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Parties

SHIV DEVELOPERS THROUGH ITS PARTNER SUNILBHAI SOMABHAI AJMERI

Plaintiff

AKSHARAY DEVELOPERS & ORS.

Defendant

Procedural Posture

Civil Appeal / Appeal Against High Court Order in Civil Revision Application No. 241 of 2017

Legal Issues

  1. 1 Whether Section 69(2) of the Indian Partnership Act, 1932 bars a suit by an unregistered firm against a third party in the facts of this case
  2. 2 Whether the sale transaction was entered into by the plaintiff firm in the course of its business dealings so as to attract s.69(2)
  3. 3 Whether the suit seeks enforcement of rights arising from a contract or statutory/common law rights (fraud, declaration, injunction)

Ratio Decidendi

The bar under Section 69(2) of the Indian Partnership Act, 1932 was not attracted because the sale transaction challenged was not entered into by the plaintiff firm in the course of its business, and the suit seeks common law and statutory remedies (fraud, declaration, injunction) rather than enforcement of contractual rights arising from a business contract; accordingly the High Court order rejecting the plaint was set aside and the Trial Court order restoring trial was reinstated.

Court Disposition

Appeal allowed; High Court judgment and order dated 15.02.2018 set aside; Trial Court order dated 07.04.2017 restored.

Orders

  • Trial Court to proceed with trial of the suit in accordance with law